Blockchain Basic II

What is a smart contract?

A smart contract is a form of a computer program that is stored on the blockchain. As the name suggests, these contracts are self-executable when predetermined conditions are met.

Smart contracts are typically used to automate the execution of agreements. An agreement created between a buyer and seller is written in lines of code. It automatically verifies and fulfils any third-party intervention.

Smart contracts are created and deployed on the blockchain. The agreement can be coded with as many conditions as necessary to meet the requirements. Parties involved in the agreement can only see the execution.

Features of smart contract

  • Smart contracts are transparent and immediately executable.
  • The digital format eliminates paperwork and conflicts between parties.
  • Smart contracts are secured because the data is encrypted.
  • It saves time, effort, and money and ensures accuracy and faster execution speed.

Popular Applications of Smart Contract

Smart contracts are used in several real-world application that involves contractual agreements. Some of the real-world applications are listed below.

  • Financial agreements of lending and borrowing
  • Different types of insurance, such as flight insurance, vehicle insurance
  • Issuing tickets
  • Legal binding contracts

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