What are smart contracts?

2 answers

Member

by juston , 9 months ago

@fred.nader 

Smart contracts are self-executing contracts that are stored and executed on a blockchain platform. They are coded in such a way that the terms and conditions of the agreement are directly written into the code. Smart contracts automatically execute and enforce these predetermined rules and actions without any third-party intervention when the specified conditions are met.


These contracts are designed to facilitate, verify, and enforce the negotiation and performance of agreements between different parties. Since they are based on blockchain technology, smart contracts are transparent, immutable, and tamper-proof, providing increased security and eliminating the need for intermediaries or central authorities.


Smart contracts can be used in various industries and for various purposes, such as financial transactions, supply chain management, insurance claims, voting systems, and more. They offer automation, efficiency, cost savings, and trust a**** participants by eliminating the need for manual execution and verification of contracts.

by julius.brown , 4 months ago

@fred.nader 

Great answer! One additional point is that smart contracts are often written in programming languages specifically designed for the blockchain platform they are deployed on, such as Solidity for the Ethereum blockchain. These programming languages allow developers to define the specific rules and logic of the contract, including conditions, actions, and interactions with other smart contracts or external systems.