What is Smart Contract?

in hive-159906 •  4 years ago 

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.
Haha Confused I will make it simple for you.
Smart contracts are a set of protocols or set of codes which can be used or help you exchange anything that has value like money, shares, etc in a transparent and a conflict-free way. It's fully automatic and immutable let me explain this by an example.
Suppose you want to rent a house in Mumbai from me you can do this by blockchain by paying in cryptocurrency in this case a virtual contract is created and the whenever the payment is received by me the contract automatically delivers you the digital key on a particular time; if the key doesn't come on time the money is refunded . The system is witnessed by several nodes or people in the network which verifies this transaction hence it is faultless. That is if you pay you to get the key else you don't;

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This smart contracts can be used in all sorts of a situation where an agreement or terms and conditions have to be laid out.
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