Smart contracts - Simply Explained

What are smart contracts and what do they have to do with blockchains and cryptocurrencies? Well, let's find out!

A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible. Smart contracts were first proposed by Nick Szabo, who coined the term, in 1994.