Can anyone tell all about smart contracts?
madelyn last edited by
Smart contracts are computer programs that run on a blockchain network. They are self-executing protocols, meaning that when a set of predefined conditions are met, they do their jobs. The primary reason for using smart contracts is to automate the transactions in real-time without the need for intermediaries.
Smart contracts work on the basis of “If/When and then” statements. For example, if you buy a car, then you get ownership of it. Let’s see this in detail.
Let’s say you want to buy a house from a seller. I’m addressing you as Scott and the seller as Allison.
So Scott wants to buy a house from Allison. The first step is to create an agreement through a smart contract that is stored on a blockchain network.
The smart contract agreement will look like this - “When Scott pays Allison 100K dollars, then Scott will receive the ownership of the house.”
Once this contract is created, it cannot be modified, so everything is safe here.
As you can see, the process is much simpler than the traditional systems where both Scott and Allison need to pay fees for third-party services involved in the process.
With the help of Smart contract development services, we can completely eliminate third-party intermediaries and the fees we pay for them.