What is a smart contract?

A smart contract is a digital contract that is stored on a blockchain. This type of contract can be used to facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts can be used to automate the exchange of money, property, shares, or anything of value.

The term “smart contract” was first coined by Nick Szabo in 1996. He defined a smart contract as “a computerized transaction protocol that executes the terms of a contract.” Szabo’s vision was to create a way to digitally execute contracts in a secure and tamper-proof way.

In recent years, the development of blockchain technology has made it possible to create and store contracts on a decentralized platform. This has led to renewed interest in smart contracts. Blockchain-based smart contracts have the potential to revolutionize the way we do business.

A smart contract is a digital contract that is stored on a blockchain. It is a self-executing contract that can be used to exchange money, property, or anything of value.

How does a smart contract work?

A smart contract is stored on a blockchain and is executed automatically when the conditions of the contract are met. For example, if two parties agree to exchange money for a product, the smart contract will automatically transfer the money from one party to the other when the product is delivered.

Smart contracts can be used for a wide range of transactions, including financial transactions, voting, and escrow services. They provide a secure and efficient way to execute contracts without the need for a third party.


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