Smart Contracts are self-executing contracts with terms directly written into code. They run on a
blockchain, eliminating the need for intermediaries and ensuring trust and transparency in every
transaction. Think of them as digital agreements that automatically execute when specific conditions are met.
How do smart contract work?
The magic behind Smart Contracts lies in their programming and execution. They are built using programming languages like Solidity (for Ethereum) or languages specific to the blockchain platform. Once deployed on the blockchain, they become immutable and tamper-proof.
Benefits of smart contract:
- Trust and Security: The decentralized nature of blockchain ensures that Smart Contracts cannot be
altered or manipulated, enhancing trust between parties.
- Transparency: As Smart Contracts are visible on the blockchain, all parties can access and verify the
terms, promoting transparency.
- Efficiency and Cost Savings: By eliminating intermediaries and automating processes, Smart
Contracts reduce costs and streamline operations.
- Speed: Traditional contract processes can take days or even weeks, but Smart Contracts execute
automatically when conditions are met, saving time.