If you have been looking at crypto projects for any amount of time, you have probably run into the terms, "verified" and "renounced." These terms are used when discussing a token’s smart contract and can help provide the investor with some crucial information when deciding whether or not to invest in a project.
But what do they really mean? And more importantly, are these a good or a bad thing for you as an investor?

🧿 What Does Verified Contract Mean?
A verified contract is where the developer has uploaded a human-readable “plain text” version of the contract code which is automatically compared to the version the blockchain has to ensure it matches. This is important because sites like Etherscan display the text version for users to dig into a contract's code.
The risk of a non-verified contract is that a user cannot verify what the contract actually does. This is a concern because you are fully (and blindly) trusting the developer. The general understanding is if a contract is not verified, it is probably a scam, as there is no legitimate reason not to verify the contract.
So yes, a verified contract is in fact a good thing!

What Does "Renounced Contract" Mean?
Renouncing a contract is a fancy way of saying the developer is giving up ownership or control of the contract, and with that, the ability to make future changes using the contract.

There are pros and cons to renouncing a contract:
Pros:
Taxes cannot be changedTypically limits changes that could affect an investorsCannot black list a walletCan provide confidence to investors that items will not change
Cons:
Unable to blacklist botsUnable to whitelist exchangesUnable to modify taxes (e.g. push more of the tax to marketing vs development)"Typically" means whatever is set in the contract is how it will remains
So while a renounced contract is more of a grey area in terms of "good" or "bad," it's important to know this piece of information when you're interested in a project. Overall, the general sentiment has shifted from “You must renounce” to “It is ok to not renounce as long as you have valid reasons”.
It is also important to note that there are scammers who will put code into contracts that allow them to perform certain actions even when the contract is renounced! Some scammers will even put code in to regain contract ownership.

In conclusion, understanding the terms "verified" and "renounced" is crucial when evaluating potential crypto investments. A "verified contract" is generally a positive sign as it allows users to inspect the contract code, reducing the risk of potential scams. On the other hand, a "renounced contract" can have both advantages and disadvantages. It signifies the developer's relinquishment of control, ensuring that key parameters like taxes remain unaltered, but it may limit certain essential modifications and exposes investors to potential risks.The cryptocurrency landscape is dynamic, and the importance of these terms can evolve over time. It's essential for investors to consider these factors in the broader context of a project's transparency, the reputation of its development team, and the specific circumstances surrounding the contract. Due diligence is key in the crypto world, and staying informed about the latest developments and trends is vital to making informed investment decisions.
#Binance #DeFiChallenge #cryptocurrency #smartcontract

Blockchain technology is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network¹. Here are some key points about blockchain:- Assets: An asset can be tangible (like a house, car, cash, land) or intangible (like intellectual property, patents, copyrights, branding)¹.- Importance: Blockchain provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members¹. This technology can track orders, payments, accounts, production and much more¹.- Security: No participant can change or tamper with a transaction after it's been recorded to the shared ledger¹. If a transaction record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible¹.- Smart Contracts: To speed transactions, a set of rules — called a smart contract — is stored on the blockchain and executed automatically¹.- Blocks: These blocks form a chain of data as an asset moves from place to place or ownership changes hands¹. The blocks confirm the exact time and sequence of transactions, and the blocks link securely together to prevent any block from being altered or a block being inserted between two existing blocks¹.Blockchain technology is best known for its crucial role in cryptocurrency systems for maintaining a secure and decentralized record of transactions². However, its applications are not limited to cryptocurrencies. It can be used to make data in any industry immutable—the term used to describe the inability to be altered². This aspect reduces the need for trusted third parties, which are usually auditors or other humans that add costs and make mistakes.#blockchain #smartcontract $BTC $XRP $ETH

Smart contracts provide a solution to these challenges by introducing trust and automation into transactions. They operate based on the principle of "if a condition is met, then execute a specified action." In essence, smart contracts automatically enforce the terms of an agreement when predefined conditions are satisfied. These terms and conditions are coded into the smart contract and recorded on a decentralized ledger, usually a blockchain, ensuring transparency and security.Advantages of Smart Contracts1. Elimination of Intermediaries: Smart contracts reduce or eliminate the need for intermediaries, enhancing trust between parties and reducing transaction costs.2. Self-Enforcement: These contracts execute automatically, ensuring that both parties adhere to the agreement's terms and conditions, creating a trustful environment.3. Security and Encryption: Operating on blockchain technology, smart contracts store data in a secure and encrypted manner, making it resistant to compromise or alteration.4. Transparency: The terms and conditions of smart contracts are clearly defined and visible on the blockchain, ensuring transparency in transactions.5. Cost Savings: By removing intermediaries and commission fees, smart contracts can significantly reduce transaction costs. Additionally, the elimination of physical paperwork and transfers leads to time and resource savings.6. Protection Against Cyberattacks: Smart contracts are more resilient to cyberattacks due to their operation on blockchain technology, preventing data breaches.7. Prevention of Misuse: Smart contracts are designed to prevent misuse by adhering to predefined rules and logic.Disadvantages of Smart ContractsWhile smart contracts offer numerous advantages, they also come with certain drawbacks:1. Code Errors: Smart contracts rely on code execution, making them vulnerable to coding errors and security vulnerabilities. Flawed code can lead to significant issues, including the theft of funds.2. Lack of Regulation: Smart contracts operate without centralized oversight or regulation, posing challenges for governments in terms of taxation and oversight.3. Legal Framework Uncertainty: The legal framework surrounding smart contracts is still evolving, creating uncertainty regarding dispute resolution between parties.4. Irreversibility of Transactions: Transactions within smart contracts are typically irreversible, making it difficult to rectify errors or unwanted actions.5. Complex Dispute Resolution: Due to the logic-driven nature of smart contracts, resolving disputes can be more complex compared to traditional contracts.6. Limitations in Certain Use Cases: Smart contracts may not be suitable for all types of legal transactions or complex contract structures.7. Risk of Misuse: In certain cases, malicious users may attempt to exploit smart contracts, especially in new and unregulated projects.In conclusion, smart contracts have become a transformative technology with numerous applications across various industries. While they offer significant advantages, including reduced costs and increased trust, it's essential to address their limitations and challenges, such as coding errors and legal uncertainties. As the technology continues to evolve, it is poised to reshape the way we conduct transactions and manage contracts in an increasingly digitized world.#smartcontract #contract #Binance

The European Union (EU) Council has agreed to amend the Data Law, which mandates a ‘kill switch’ for applications using smart contracts, according to local industry sources.

This comes after the EU Parliament passed the ‘Data Act‘ on March 14, which weakens the immutability of smart contracts. The bill includes regulations requiring smart contracts to have access control, transaction confidentiality protection, and suspend and reset functions.

However, the decentralized finance (DeFi) market is protesting that these functions required by the bill may undermine the original purpose of smart contracts, which are contracts that are automatically executed through code recorded on a public blockchain without an intermediary. The DeFi market argues that the bill could potentially compromise the public and immutable nature of smart contracts, which is a fundamental aspect of blockchain technology.

Popular decentralized exchange (DEX) Curve Finance has already spoken out against the bill, saying that it is impossible to implement. Other players in the DeFi market are likely to follow suit, as they consider the bill to be a significant threat to their operations.

The bill went to a three-way consultation in which the European Union Parliament, the Council and the Executive Committee discussed details. The first related meeting was held on the same day that the EU Council agreed to amend the Data Law. The final draft of the data law will be decided after negotiations between the Parliament and the Council through the mediation of the European Commission.

The passing of the Data Act and the subsequent amendment of the Data Law highlights the ongoing debate around the regulation of blockchain technology and its applications. While some argue that regulations are necessary to ensure the protection of users and to prevent abuse, others argue that excessive regulation could stifle innovation and compromise the core principles of blockchain technology. As the DeFi market continues to grow and evolve, it is likely that similar debates will continue to emerge in the future.

#EU #Data #smartcontract #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

In the ever-evolving landscape of cryptocurrencies, ensuring the security of transactions, smart contracts, and decentralized applications (DApps) has become paramount. SafeOne Chain emerges as a trailblazer in this domain, offering a comprehensive suite of security services designed to fortify the foundation of the crypto space.Deep Dive into SafeOne Chain's Security Services. AI-Powered KYC (Know Your Customer):SafeOne Chain leverages cutting-edge artificial intelligence to revolutionize KYC processes. With fully automated KYCs, owner wallets are swiftly and accurately verified, streamlining onboarding procedures for clients. This not only enhances efficiency but also establishes a robust first line of defense against unauthorized access.Interactive KYC Sessions:Acknowledging the importance of human touch in sensitive matters, SafeOne Chain introduces interactive KYC sessions. Clients undergo a personalized verification process, ensuring the authenticity of their identity. This meticulous approach, conducted on SafeOne's parameters, not only enhances security but also establishes a foundation of trust between the client and the platform.Smart Contract and DApp Audits:SafeOne Chain goes beyond surface-level security with in-depth audits of smart contracts and DApps. These audits provide a profound insight into functionality and code security, identifying vulnerabilities that could pose risks. Every audit is conducted with the utmost care and confidentiality under a Non-Disclosure Agreement (NDA), emphasizing SafeOne's commitment to client privacy.Client-Centric ApproachAt the core of SafeOne Chain's philosophy is a commitment to treating every client with the highest degree of care. The confidentiality upheld by the NDA ensures that client information remains secure throughout the auditing and verification processes. This client-centric approach not only safeguards assets but also cultivates a relationship of trust and reliability.The Need for Trusted Services in the Crypto SpaceThe meteoric rise of cryptocurrencies has brought forth unprecedented opportunities, but it has also exposed the industry to new risks and challenges. The need for trusted services, like those provided by SafeOne Chain, cannot be overstated. As the crypto community continues to grow, the demand for secure, reliable, and transparent platforms becomes increasingly vital.In conclusion, SafeOne Chain stands at the forefront of safeguarding the crypto ecosystem. Through innovative AI-powered KYC processes, meticulous audits of smart contracts and DApps, and a client-centric ethos, SafeOne Chain is redefining the standards of security in the crypto space. As the digital frontier expands, SafeOne remains a beacon of trust, ensuring that users can engage with the crypto world confidently and securely.#Security #KYC #smartcontract #safeonechain #CryptoNews $BNB $ETH $BTC