Hi guys, I'm Harry, I'm 22 and I have recently graduated from Bristol Uni and I live in London.
Something that really interested me recently was finding out about flash loans, which are a relatively new addition to the cryptocurrency space.
And obviously with crypto it comes with a lot of stuff which doesn't hold a use case such as Dogecoin, NFTs in my opinion and stuff like that.
But smart contracts are different because they have a thing called atomicity or they provide atomic transactions,
which means that the money only gets given to the person who is asking to borrow it if the parameters of the loan are met in the first place.
So for instance, it's basically if you've got a profitable opportunity, it will check on both blockchains that the profit is there and then it will give you the money to make the profit.
So I bet you're asking where does this use case really, where does this make a lot of sense would be something like arbitrage.
So it would check on either exchange if there was a price difference that made it worthwhile minus the fees and transactions to complete the arbitrage.
And then it would send the money over at exactly the same time as you confirm the transaction.
So they're atomic, they happen at the same time and that way no capital is risked.
So that means that someone can buy stuff with minimum collateral and that's incredibly powerful because they know that they're going to get paid back, all the transactions just won't go through.
So I hope that makes sense and if you want to learn more just look it up, it's becoming more and more widely spread and talked about.
So yeah, thanks very much guys.
