Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They run on blockchain platforms, like Ethereum, and automatically enforce and execute the terms when predefined conditions are met. Here’s a closer look at their key features and significance:
Automation and Efficiency: Smart contracts automate processes, eliminating the need for intermediaries. Once conditions are met, the contract executes automatically, reducing delays and human error.
Trust and Transparency: Since smart contracts operate on blockchain technology, they are transparent and immutable. All parties can view the contract terms and transaction history, fostering trust. The immutability ensures that once deployed, the contract cannot be altered, securing the agreement against tampering.
Security: Smart contracts use cryptographic security measures, making them resistant to hacking and fraud. This ensures that the contractual terms and conditions are protected from unauthorized changes.
Cost Savings: By removing intermediaries and reducing the need for manual processing, smart contracts can significantly lower transaction costs.
Decentralization: Smart contracts operate in a decentralized manner, meaning no single party controls the contract. This decentralization ensures fairness and reduces the risk of manipulation.
Thanks
~ Nesaty
I don't know what smart contract is and how it works, very nice that you posted about it, thank you
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