Smart Contracts

Smart contracts are one of the key components of BitcoinSV and utilising Bitcoin’s unbounded scripting capabilities it’s even possible to code Turing Complete smart contracts, on chain. These digital contracts are trustless, autonomous, decentralised, and transparent — and are usually irreversible and unmodifiable once deployed.

Smart contracts on Bitcoin have many advantages including reducing — or even removing — the need for intermediaries and contract enforcement in an agreement or transaction. This is because with a smart contract, the code defines the mechanisms of the transaction and is the final arbiter of the terms. This allows Bitcoin SV based smart contracts to be both legally enforceable and scalable, two properties that aren’t found on many other chains including Ethereum where all smart contracts are executed by everyone in “one global computer”.

Bitcoin smart contracts are completely distributed with one Virtual Machine (VM) per contract/token. In fact we can run unlimited numbers of VM’s and thereby achieve unlimited scalability and availability. Bitcoin smart contracts also do not require “Gas” to execute and thus its normal low transaction fees still apply.