S4B Crypto Contest - Season 19

Hello everyone,
It's your favorite Steemian @rakiya from Nigeria and I'm delighted to join in this contest organized by @waqarahmadshah in this noble community today. It's a wonderful contest and I love to share my participation in it.

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What is a smart contract?

Smart contract can be seen as a program that is self executed and it passes through 4 main process i.e., automate, enforce, verify and execute a transaction. The essence of smart contract is to do away with third party.

This means that smart contract is an organised program that is designed to execute a transaction. Before the execution of this transaction, the program will automate the transaction, check if the rules for the transaction is met, verify that everything is well and then execute the transaction.

This is to eradicate third party from interfering and also to hestan the rate at which transaction is being done. Smart contract execute after checking an ensuring that all criteria are met.

What is the role of smart contracts in decentralized finance (DeFi)?

The role of smart contracts in decentralized finance are what I have listed above and more. So let's look at a few of them below one after the other.

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• Automate transaction: The smart contract performs its function automatically because it has been programmed to handle task in that manner.

• Enforce transaction: Transaction before execution must have passed the criteria lay down by the blockchain and any that doesn't meet the criteria won't be executed.

• Verify Transaction: Transaction must be verified and confirmed before it can be executed by the smart contract. This is done without any third party.

• Execute transaction: Transaction are executed if the above criteria are met and this is also done automatically without a third party.

What security measures are essential for smart contracts?

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To ensure security measures for a smart contract, you must ensure testing of the code and be sure that it is bringing out expected results also you must ensure that audits of the code are carried out at all times.

Also there should be a format of the code with proofs that it is valid. Most people use mathematical proofs to ensure that their code are functioning as designed. So these and many more are ways to ensure that the security of the smart contract is intact.

I want to invite @josepha, @dave-hanny, and @ruthjoe to join the contest also.