The Unravelled Tale of Contract Ownership in Blockchain Technology
With the ever-growing popularity of cryptos, they have become a magnet for investors. The dawn of DeFi, thanks to the Ethereum blockchain, created a fast and secure way to invest in blockchain.
Blockchain consists of a series of public ledgers that contain all the information regarding the crypto assets. They are important in ascertaining the address that is the rightful owner of a smart contract while also indicating any ownership transfers. However, the ownership of smart contracts is not such a well-known and understood process. To understand the process better, read on to find out.
Blockchain consists of a series of public ledgers that contain all the information regarding the crypto assets. They are important in ascertaining the address that is the rightful owner of a smart contract while also indicating any ownership transfers. However, the ownership of smart contracts is not such a well-known and understood process. To understand the process better, read on to find out.
Aims of Ascertaining Contract Ownership
Ascertaining contract ownership is an important aspect of the blockchain world. Several roles and actions have the ascertainment of contract ownership as a primary requirement. They range from primary actions to other support or additive actions.
To begin with, many smart contracts have a requirement that they must either be owned or controlled in some way or another. It is crucial for allowing several essential functions within the blockchain, such as administrative functions or withdrawing funds.
Similarly, crypto financial audit firms require one to demonstrate ownership of their crypto assets. It helps gauge one's crypto assets, useful in calculating the taxes due. Ascertaining ownership of contracts in a DeFi platform does just that.
During blockchain protocol audits, the smart contract ownership must be ascertained. It plays a crucial role in gauging the addresses that can play specific essential roles, such as administrative. Such roles can influence its susceptibility to attacks on the blockchain. The top protocol audit firms, such as Solidproof and PWC Switzerland, to name a few, carry out contract ownership checks.
To begin with, many smart contracts have a requirement that they must either be owned or controlled in some way or another. It is crucial for allowing several essential functions within the blockchain, such as administrative functions or withdrawing funds.
Similarly, crypto financial audit firms require one to demonstrate ownership of their crypto assets. It helps gauge one's crypto assets, useful in calculating the taxes due. Ascertaining ownership of contracts in a DeFi platform does just that.
During blockchain protocol audits, the smart contract ownership must be ascertained. It plays a crucial role in gauging the addresses that can play specific essential roles, such as administrative. Such roles can influence its susceptibility to attacks on the blockchain. The top protocol audit firms, such as Solidproof and PWC Switzerland, to name a few, carry out contract ownership checks.
Standardisation of Contract Ownership
In most instances, the contract interface that indicates contract ownership is a standardised one. The primary aim is to ensure compatibility with both the contract and user interface. Some key examples of contracts that stand to benefit the most from the standardisation of the process include:
Contract Wallets
They play the key role of holding ownership of the contract and enabling their transfer to new owners. With a standardised and simplified ownership process, it is easier for all users to transact and transfer ownership to other users easily. It omits the necessity of always contracting a third party to transfer ownership.
Smart Contracts Trade Exchanges
The crypto exchanges that either buy, sell or auction contracts and DeFi instruments stand to gain a lot from a standardisation of the process. Seamless trade can only be possible where there is a standard with which the owner of a contract can be found and one for transferring ownership.
Contract Registries
TContract ownership is a highly sensitive matter that is a top target to fraudsters. Many registries opt to restrict adding and removing contracts to the contracts' owners only.
A standard of verifying that the rightful owners have submitted a contract before accepting it is mandatory for the registries.
A standard of verifying that the rightful owners have submitted a contract before accepting it is mandatory for the registries.
Demonstrating Ownership of Contracts
Below is a smart contract example demonstrating its ownership and permission levels within the blockchain. 
Since not everyone is well versed in coding languages, the diagram may appear gritty and complex. It shall, however, be deciphered further in this section. However, it is important to note that a contract is a coded consensus protocol within a blockchain. All users must follow it before they can transact.
Understanding the contract ownership depicted
The diagram is structured in numbered lines. Different instructions can be gauged by following the number lines. Lines 3 to 6 show the ownership of the contract. It shows a link between the contract to the owner of a specific address.
There is an "onlyOwner" modifier on line number 7. Its purpose is to ensure that all functions within the modifier can be executed by the contract's owner only.
There is an "Add_pharmas" function that starts from lines 12 to 18 that runs concurrently with the "onlyOwner" modifier. It ensures that the addition of any clinical sponsors is reserved for the owner alone. Any attempt by other users to execute the function is declined automatically.
There is an "onlyOwner" modifier on line number 7. Its purpose is to ensure that all functions within the modifier can be executed by the contract's owner only.
There is an "Add_pharmas" function that starts from lines 12 to 18 that runs concurrently with the "onlyOwner" modifier. It ensures that the addition of any clinical sponsors is reserved for the owner alone. Any attempt by other users to execute the function is declined automatically.
Forms of Contract Ownership
Ownership of contracts comes in two main forms. They may have a single owner, or a contract may have shared ownership.
Under single ownership, one single account reserves all ownership to a contract. An ownable.sol contract offers the most basic form of such ownership. The owning account can perform administrative roles and can either opt to transfer or renounce ownership to the contract.
Shared ownership or co-ownership is becoming an increasingly popular way to hold contracts legally. It is done by tokenizing a contract, which can be summed up as creating fractions of the contract. Effective trade execution is made possible with immense speed, a trustless system, and all nodes’ massive processing power on a blockchain.
The smart contracts' self-executing nature also greatly reduces the need for legal suits in the event of a fault. All member parties conform to the underlying code's rules, creating a transparent trade process.
Under single ownership, one single account reserves all ownership to a contract. An ownable.sol contract offers the most basic form of such ownership. The owning account can perform administrative roles and can either opt to transfer or renounce ownership to the contract.
Shared ownership or co-ownership is becoming an increasingly popular way to hold contracts legally. It is done by tokenizing a contract, which can be summed up as creating fractions of the contract. Effective trade execution is made possible with immense speed, a trustless system, and all nodes’ massive processing power on a blockchain.
The smart contracts' self-executing nature also greatly reduces the need for legal suits in the event of a fault. All member parties conform to the underlying code's rules, creating a transparent trade process.
Author's Note
Crypto trade is a well-known and greatly simplified process to make it possible for investors to purchase, own, and sell one. The dawn of smart contracts added another new aspect, yet the ownership process is the same simplified one. Many token holders may not have a clear grasp of the process involved in owning one.
One needs to understand if they are a sole owner or co-owner of a contract and their permission. It will also become increasingly important to know of and ascertain one's ownership of contracts as government legislations start covering crypto assets.
One needs to understand if they are a sole owner or co-owner of a contract and their permission. It will also become increasingly important to know of and ascertain one's ownership of contracts as government legislations start covering crypto assets.
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