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What is a smart contract?

If you have a definite idea of the Ethereum digital currency, then in any case you have at least once come across the concept of a smart contract that forms the base of the platform. At its core, a smart (English Smart) contract is a specific digital algorithm in the form of a code and protected by cryptography. Its functioning is conditioned by pre-designated points that cannot be changed, and the chain of which cannot be invaded. If the creator of the contract, when writing the code, indicated in it the adherence to certain conditions and the reaction to them with certain events, this will definitely happen.

What is a HYIP on a smart contract?

The main problem with every hype is that investors feel as if they are playing football alone. All the threads of control are held in the hands of the administrator, and it depends on him whether we will have results or not. But with the advent of smart contracts, the state of affairs has changed a bit, since now the admin does not have unquestioning power - projects exist autonomously, and no influence on their functioning, and even more the appropriation of profits, is now impossible. The creator of the hype creates a smart contract that guarantees its refusal as an administrator from owning his brainchild, and "on the shore" prescribes a certain algorithm, which the system will follow further.

Investors, in turn, send currency to the smart contract address and receive a kind of “rate” - a stable interest income as long as the project account remains full.

What is the difference between standard HYIPs and HYIPs on smart contracts?

The HYIP admin on a smart contract can in no way interfere with the work of the project, he only works out the base (algorithm), according to which the project will develop, and publishes open code so that any independent expert can analyze it. If such checks pass without a hitch, the HYIP project is recognized as honest and reliable.

Among other things, investors can personally track changes in the project cash desk. Each HYIP as shown on on a smart contract is tied to a single Ethereum wallet, which, like any address, can be checked in a browser.

The admin at the very beginning of the creation of the project in the algorithm prescribes the conditions for the distribution of funds. It is common practice to allocate 80% to investor payments and channel the remaining 20% to marketing, admin fees and other bonus items. In an ideal system, a hap project on a smart contract will function until its wallet is empty. Thus, the option that the admin can somehow assign the cash register and disappear is immediately swept aside. However, do not forget about the harsh reality.
First of all, if there is no information anywhere about the audit of the project code, it is highly likely that in fact no smart contract exists, and a standard HYIP with an elementary legend is provided at your disposal.

Secondly, the option is not ruled out in which the admin will try to outsmart the expertise and leave a loophole in the code that will give him a chance to withdraw money.Positive and negative qualities of HYIPs on smart contracts.

HYIPs on smart contracts are now massively capturing the market and attracting the attention of investors. And of course, each new product always has its pros and cons. And if users are accustomed to the fact that everything is clear with standard HYIPs, then HYIPs on smart contracts bring their share of ambiguity.
Undeniable advantages of HYIPs on smart contracts:
Lack of control by the admin. Definitely a positive aspect of working with such HYIPs. The admin actually waives all rights to manage his project and henceforth cannot interfere in its functioning in any way. Accordingly, the risks of skimming the HYIP and disappearing from the radars are canceled. Thus, the project is simultaneously owned by all bidders, and the admin only performs marketing tasks to increase the number of investors and profit.

System reliability. The Ethereum blockchain can be called a more controlled and secure object than the Pentagon headquarters. This suggests that any smart project functioning on it will also remain a secure structure - no hacks and provocations, cryptographic protection ignores everything.

System transparency. Even in comparison, if in working with traditional HYIPs we can only obediently absorb the statistics that the admin can randomly draw to us, then HYIPs on smart contracts will publish any information. With the help of services, any user can personally track how the project's account is replenished (or, on the contrary, emptied). Such an opportunity allows not only to check where and why the funds are going, but also helps to determine in advance whether it is worth sending your money to this or that project.

Distribution of finance. The smart contract code determines in advance what percentage of income and where it will be directed - the risk of inadequate investments by the administrator in marketing or other goodies is canceled. Thus, there is no risk of "flying in" because of the whims and mistakes of the administrator, and the HYIP, in principle, will leave everyone in relative peace and give the opportunity to develop stably and competently further.

Complete stability. If you have been looking for projects for a long time in which you can consistently receive one certain interest rate without any time frame, then a smart project guarantees you that there will not come a moment when the administrator can randomly change the redistribution of funds.