Smart Contracts: An Overview

[Alex077 16139]

         

 

Blockchain technology has significantly changed the entire cryptographic space. Its key features are simplicity, decentralization, security, and immutability. It is these qualities that have brought technology great popularity. However, there is one more thing that has heightened public interest in technology - the lack of intermediaries in financial transactions. Mostly, this is the merit of smart contracts, which allow you to save time and make transactions faster, more cost-effective, and more efficient.

 

What is a smart contract?

Smart Contract is a computer protocol designed to digitally verify or enforce contract terms. The phrase "Smart Contract" was first coined in 1994 by Nick Szabo, an American cryptographer, and computer scientist.

 

Smart contracts help people use their assets securely in an open, conflict-free, blockchain-based ecosystem. Smart contracts are created and deployed at the top of the blockchain. In other words, they are automated digital versions of traditional real-world contracts.

 

How do smart contracts work?

Smart contracts can be roughly compared to vending machines. You send digital coins (for example, TON Crystal) to a smart contract, and it sends you what you should have received. In the real world, a smart contract can also be compared to a lawyer or notary, but in this case, the transaction process takes much longer.

 

Smart contracts are completely autonomous, work without human intervention and ensure the fulfillment of all obligations prescribed in them. They can also spell out penalties in case of non-compliance with the contract. Smart contracts are the technology that is changing the world for the better.....