What is a Smart Contract? And What Does It Have to Do with BOB?
Let me explain in a way that everyone can understand.
A smart contract is a set of code used to create tokens on a blockchain network.
Each token has its own function and purpose.
Smart contracts run on top of the blockchain, which serves as both the system that connects token interactions and the validator that confirms every transaction block.
Tokens are not just used as cryptocurrency.
They can also be used for:
Buying and selling
Voting
Storing data
All depending on the functions written into the smart contract.
Before the developers of BOB performed a renounce owner (giving up all control of the smart contract),
they created multiple supporting tokens containing different smart contract functions to support the main token: BOB.
Once the renounce was complete, BOB became final — the developers could no longer change anything about it.
If you see a wallet that only transacts in one direction (only buys or only sells),
it usually means that wallet is used for a specific automated task, executed by the smart contract.
For example:
One wallet may be designated only for buying.
Another only for selling.
When someone makes a purchase in the market,
the “buy wallet” triggers the smart contract to send tokens to the buyer.
The same applies for sales.
So don’t be surprised if a wallet appears to sell tokens even though it never bought any —
That’s exactly how smart contracts operate.
You can verify all of this by checking the transaction hash (TX hash).
That’s how simple the mechanism is on the surface.
However, writing smart contract code is not easy — that’s a job for programmers.
What you should focus on is this:
Does the smart contract contain any malicious functions?
Can it be used to scam or manipulate?
And in the case of BOB, I’ve found no such dangerous functions in its smart contract.
Hopefully, this helps you make smarter decisions.
Make sure you follow me for more important insights.