SMART CONTRACTS: WHAT? WHY? AND WHEN?

Good day to the wonderful members of this community I hope this well prepared post of mine meets you all at favourable times. Today I will be writing about **smart contracts** what it is, the applications and why it was created and its history and when it was created. I hope you all enjoy reading as I have put lot of effort just for you.

WHAT IS SMART CONTRACT?

In simple terms Smart contract can be said to be a computer program that carries out or execute it's preprogrammed or preset orders once it's predefined criterias or conditions are met without fail. The smart contract is different and stands out because unlike the traditional contract it does not wait or require any command to be given to it manually before it executes a contract, it does not require a middle man or an intermediary.

Smart contract is decentralized and therefore does not require any central authority, it leverages the block chain network and has its orders or contracts executed on a series of computer network, this ensures reduced risks, fraud or tampering and thus gaining the trust of its users.

Smart contract makes use of or utilizes cryptographically secured meaning it has in its warchest or arsenal all the techniques and methods the cryptographic security offers to secure and protect its data and transactions ensuring the privacy of it's users is not violated in any form.

Smart contract is transparent, meaning every transaction made and every action taken is taken note of and recorded in ledger which is accessible by all relevant party of the executed contract and also the conditions for the contract to be carried out are also viable in that ledger and the details recorded in it cannot be manipulated or altered retroactively.

ITS APPLICATIONS, WHY WAS IT CREATED?

Smart contract can be applied in different aspects and was created for purposes that will be mentioned shortly. Smart contract was created to help revolutionize Financial Services. Moving from the traditional financial system with smart contract services that needed middle men or intermediaries such as the bank can be done automatically and it also allows for the option of a decentralized financial system.

Another application of the smart contract is in real estate, the real estate business is also being revolutionized by smart contract fast lining the payments and transaction processes seeing as it is automated and not requiring any intermediaries and thus errors are also minimized.

Supply chain management is another area and aspect in which smart contract is being applied. Smart contract allows for orders and conditions made and agreed on by the users or participants in the supply chain to be air tight or unbreakable hence reducing the risks of fraudulent activities and enhancing accountability and transparency.

IT'S HISTORY, WHEN WAS IT CREATED?

Although it was until the launch of Ethereum in 2015 that smart contract attained it's pivotal moment the idea and concept actually dates back to the late 1990's, the name smart contract was coined by a computer scientist Nick Szabo he introduced it as a self- executing contract with the terms written directly into code.

Though Szabo gave birth to the idea and set the foundation of the smart contract it was unable to be practically implemented due to the lack of the technology and resources, one of these technology was the block chain technology. But as at 2008 the block chain technology was created when Bitcoin was introduced by Satoshi Nakamoto. The block chain technology provided the grounds for which the smart contract could be practically implemented.

After that came the launch of Ethereum in 2015 which provided the ground and platform for users to make use of and deploy smart contracts, it provided turning complete scripting language based on the decentralized platform Ethereum.