Hello My Steemain Friends ,

Dear friends, I am @aviral123 from India. How are you all, I hope you all are well. I am fine too . Today I am sharing my post with you in this community. . Hope you all will like my post. Today I will share with you"Ethereum’s Smart Contracts Explained**. I want to share my thoughts about this with you all. let's start

pixabay

Blockchain technology is a technology that enables various types of transactions, solving decentralized problems, etc. This is kind of a game changing event. The most important role of blockchain technology is to implement smart contracts.

What are Ethereum smart contracts?

In simple words, we can understand that a smart contract is a type of self-executing contract, in which the terms of the agreement related to the person making the transaction i.e. buyer and seller are coded in the form of lines of code. Smart contracts have now become an important part of many businesses. Which provide secure solutions and rules for business activities. In 2013, Ethereum, the second largest blockchain network, pioneered the need and importance of smart contracts. This contract eliminates the need for intermediaries between the transactors and provides a secure environment to the traders. Code in a smart contract automatically executes when certain specific conditions are met.

pexels

A computer language equivalent to JavaScript, Ethereum smart contracts are written in Solidity. The Code defines the circumstances under which the contract is performed. For example, we understand that the role of a smart contract is to transfer ownership of a digital asset from one party to another whenever certain criteria are met.

One of the important benefits of smart contracts is that they can also save time and reduce the harm of human mistakes by automating the process of smart contract execution. They are ideal for various industries like banking, real estate, etc.

How do Ethereum smart contracts work?

• Given the high risk involved in events like fund transfers, these smart contracts automate the process of executing certain specific conditions. For example, a smart contract can issue payment to the seller immediately after the buyer receives the product.

• A smart contract process follows the same steps for buying and selling a product.

• Smart contract code in any type of business verifies that the terms of a sale have been met between the buyer and seller, such as the receipt of an agreed amount of cryptocurrency.

• Both parties must agree on the terms of sale including price and delivery date.

• Both parties can trust each other that the agreement under the smart contract has been fulfilled and enforced.

pexels

• The buyer sends the agreed amount of cryptocurrency, and usually Ether, to the address of the smart contract. Transaction data, including product transfers and payments, is recorded by owners of any product on the Ethereum blockchain. It plays a vital role in providing a secure and permanent record of transactions. This process provides traders with a secure and transparent way to buy and sell products through the use of cryptocurrencies. Using smart contracts introduces the risk of fraud in any market.

Conclusion

Thus we understood that the Ethereum blockchain has a bright future, with traders receiving a secure and problem-free platform. Where transaction data is transparent. By operating the smart contract process, a trader can avoid taking risks. In which the need for intermediaries between the transactors has been eliminated. Thus we saw that smart contract is a very secure contract.

Greetings

Thankyou 🙏