A smart contractis a computerprotocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. With smart contracts, we can share anything of value, among strangers in a conflict-free transparent way. We can automate many solutions by writing a contract on a Blockchain to make things simple and efficient.
How Do Smart Contracts Work?
A smart contract is a self-operating computer program that runs within a blockchain. It contains a set of rules that constitute an agreement made between two or more parties. When these rules are met, the digital contract executes the transaction. It’s like a regular application that implements some business rules, only it uses a blockchain as a database. This means there is no need for a third party, like a bank, a broker or a government.