What Are Smart Contracts?
Just like normal contracts, Smart contracts are consensuses between between two parties where one is giving something of value and the other is accepting. Smart Contract is a self executing code that confirm the terms of the compact.
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The code is then sent to a Blockchain address as a transaction, it's then validated by the blockchain consensus mechanism. After the transaction is verified and included in a block, the smart Contract is unalterable.
Smart contracts are secured, decentralized and transparent. They are tamper proof and unchangeable when processed. With smart Contract, there has been creation of many Decentralization Application (Dapps) with aim of Decentralizing the internet.
A smart Contract is solely used for transaction. It transparent feature makes it easier for digital identity. Data, Asset, Location can all be verified through the smart contracts which is used to spot out fake transaction and fraud.
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Another feature smart Contract offer are the fast and speedy transaction which are used in Decentralized Financial (DeFi), when all condition is met, the consensus of the algorithm execute the contract swiftly.
Smart contracts are speedy due to their digital form, no paperwork needed to process which makes no error that usually occur in traditional documents.
1. Security
Transaction on Blockchain are encrypted, which in terms make them hard to alter/hack. But, Blockchain uses a consensus of repeated blocks on a distributed ledger to validate a transaction, which a block was able to be altered, then the rest will also be altered. This is where smart Contract come in handy.
2. Trust and transparency
Smart contracts are trusted and transparent since there's no third party involved and the encrypted records of transaction are shared between participants.
3. Interruption Free
Smart contracts work 24/7 and once they have been executed, it cannot be stopped.
4. Cost-effective
With the help of Smart Contracts, transaction has become more cost effective by removing intermediaries from the process which makes the transaction faster and cheaper.
5. Savings
Smart Contracts eliminates need for intermediaries that manage transaction which in terms removes excess fees.
With the creation of smart Contracts, many possibilities has been unlocked through this. More and more organisation are building app on the Blockchain which they use smart contracts as security. Thank you for reading...
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Smart Contracts are doing a significant contribution to the entire Crypto market. I can define the ETH project as the largest and the smart contract powered project nowadays.
That's exactly true, Ethereum has made history with their Blockchain network..
Thank you for reading...
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Smart contract has really made transactions on blockchain quite seemless and less risky. Thanks for sharing this useful information.
Thank you for reading ✅
It is really good post.thanks for sharing.
Thanks for reading
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Smart contact is very important and you are just outline some of the most important feature of smart contact. DeFi and Dapp all possible through smart contact. Good job for just a good post.
Thank you for your considerate comment, I would have love to explain further but I was rushing to work.
This is an excellent article. Thank you for providing this information.
Thanks for reading.
You gave done really well in explaining this topic. Indeed smart contracts are the foundation for all decentralized applications.
Thank you for sharing
Without the smart contract it would have be almost in possible to create decentralized applications. And with it transparency, makes it a lot interesting. Thank you for sharing this article with us. Greetings!
Thank you for reading till the end. Goodluck⭐