Indodax CEO Encourages Smart Contract Use For Crypto Asset Transactions In Indonesia

Indodax Chief Executive Officer (CEO) Oscar Darmawan. (photo: linkedin)

JAKARTA - Indodax Chief Executive Officer (CEO) Oscar Darmawan said smart contract technology is a digital execution protocol stored in the blockchain network in every crypto asset transaction.

"With a smart contract, we can enter the regulation and apply it through a code. If the agreement made by both parties is already using a smart contract, then we no longer need a third party that functions as an mediator or to ensure transaction verification. Because the smart contract stands on a public blockchain network, even though the general public can see the contracts that have been agreed upon," said Oscar through his official statement in Jakarta, Saturday, April 29.

Oscar explained that with smart contracts, this technology is able to support every crypto asset transaction to remain safe and transparent. The technology is able to program anything, exactly with other computer programs, but the basis for which it is different is smart contract using the blockchain technology system.

Based on data from the Commodity Futures Trading Supervisory Agency (CoFTRA), the number of crypto asset users in Indonesia reached 16.55 million people as of November 2022. This figure increased 48.7 percent compared to 2021 which recorded 11.2 million users.

This number is dominated by users in the age range between 18-30 years. This shows the high potential of the crypto market in Indonesia, as well as the need for more understanding regarding the ecosystem that supports its transactions.

Oscar explained that basically the concept of smart contract is pioneered by the Ethereum network. Therefore, many crypto tokens run on the Ethereum network.

"With the increasing number of tokens running on the Ethereum network, Ethereum's scalability is getting slower. Not to mention plus the Ethereum gas fee which is also large. With this shortcoming, another smart contract network was born, of which some are the Solana, Polygon, and Cardano networks," explained Oscar.

Currently, smart contract technology has been implemented by many developers from non-employable tokens (NFT), crypto token makers, or Decentralized Apps.

"I hope that the use of smart contracts can be used not only for industry players in the blockchain sector, but for industry players outside the blockchain and also those in government," he concluded.