What is a Smart Contract | 10% for @tron-fan-club

A smart contract is a self-executing digital agreement. It is the feature of blockchain technology. Blockchain provides a decentralized and distributed ledger that records and verifies transactions. It is a computer program that automatically executes and enforces the terms and conditions of a contract. Smart contracts are used to verify an agreement between multiple parties in a transparent and secure manner. The code of a smart contract contains the terms and conditions. These terms can range from simple conditions like if something X happens, then do another task. Any complex and logical calculations can also be set with smart contract. The code is written in a programming language under the blockchain network.

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Smart contracts have several advantageous features over traditional contracts. Traditional contracts are manual processes where smart contracts are automatic. Smart contracts automate the execution of contractual obligations. It eliminates the need for manual processes and intermediaries. Automation ensure security and reduce time and cost. All transactions are recorded on the blockchain and can be audited by anyone. Smart contracts are tamper-proof. Once deployed, the code and the terms of the contract cannot be altered or manipulated. This immutability protects against fraud and unauthorized modifications.

By removing intermediaries and using automating processes smart contracts reduce costs associated with traditional contract management. Parties can save legal fees and overhead costs. The speed and efficiency are particularly beneficial for financial transactions which is possible with smart contracts. Smart contracts are accessible to anyone with an internet connection only. No central permission is needed. Under smart contracts, funds can be automatically released from an escrow account once certain conditions are met. Actually, Smart contracts have a wide range of applications across various industries.