Automated Smart Contracts
Coco uses Automated Smart Contracts that offer several benefits over the traditional cryptocurrencies Smart Contracts. Cocos Automated Smart Contracts can be triggered by time, like crone jobs in Linux or by incoming transactions, it makes it possible to implement subscription services and third party fee systems.
A merchant creates a contract document; it includes the contract script and terms of services, the merchant calculates the hash of the document and makes a transaction over the blockchain that consists of the document hash and the script. Then the merchant sends the document to the consumer or provides the customer with a link to the document. The customer uses the Wallet software to read the document, once the customer is ready to accept the deal, the Wallet calculates the document hash and submits a transaction over the blockchain. This way the consumer knows that the document is indeed whats going to be executed by the blockchain. For example, if a user subscribes to an online game via the blockchain, the user makes one transaction and then every month or week, whatever the contract script says, the user will be charged with the game subscription fees. Those fees are automatically formed over the blockchain and don’t consume additional block space.
Another use case will be Clark and Lois that open an ice cream business where they split their earnings evenly 50/50. Clark creates an automated contract and links it to his wallet, so each time a customer buys an ice cream and sends a coin transaction to Clark wallet, it triggers the Automated Smart Contract, and 50% of the costumer coins are sent to Lois wallet.