What is a smart contract and how does it work in blockchain technology?
Curious about blockchain technology
A smart contract is a selfexecuting program that automatically executes the terms of a contract when certain conditions are met. It is a computer protocol that facilitates, verifies, and enforces the negotiation and performance of a contract without the need for intermediaries such as lawyers or banks.
In blockchain technology, smart contracts are typically implemented using programming languages such as Solidity or Vyper and run on a decentralized network of nodes, where they are validated and executed automatically once the predetermined conditions are met. Once the terms of the smart contract are agreed upon by the parties involved, the code is deployed to the blockchain and is immutable, meaning it cannot be changed or altered once it is executed.
Smart contracts have several benefits in blockchain technology, including increased efficiency, transparency, and security, as well as reduced costs and the elimination of intermediaries. They can be used in various industries, such as finance, real estate, supply chain management, and more.