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

Smart contracts are primarily built on blockchain technology, which provides a decentralized and distributed ledger that records and verifies transactions. Simply put, a smart contract is a self-executing digital contract that runs on a blockchain. It is a computer program that automatically executes and enforces the terms of a contract without the need for intermediaries or human intervention. The most common blockchain platform for smart contracts is Ethereum, although other platforms such as Binance Smart Chain and Cardano also support smart contract functionality. Let's know some important key points of Smart Contact.

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Once smart contracts are deployed on the blockchain, they become immutable i.e. they cannot be changed and instead they become permanent. This immutability ensures that the terms of this agreement cannot be tampered with, as well as providing a high level of security and trust. One of the advantages of smart contracts is that they automate the execution of contractual obligations, thereby eliminating the need for manual processes and intermediaries. This in turn reduces administrative costs and eliminates the risk of human error or bias.

Because they remove intermediaries and automate processes, smart contracts reduce the costs associated with managing traditional contracts. As such, the parties can save on legal fees, administrative overhead and third-party verification services. Since blockchain is a decentralized platform, smart contracts are tamper-proof and secure due to the decentralized nature of blockchain technology. Once established, the code and terms of the agreement cannot be changed or manipulated. That is, once conditions are given, they become immutable. Today its main advantage is that immutability protects against fraud, censorship and unauthorized modification.

Because they do not rely on third parties or intermediaries, smart contracts are accessible to anyone with an Internet connection without the need for approval from a central authority. This inclusion enables individuals and businesses in underdeveloped regions to participate in global economic activity.