What is a Smart Contract, and How Does it Work? Step By Step Beginners Guide to understanding smart contracts
Similar to any other contract, Smart Contract states the terms or guidelines of the contract. The concept behind “Smart Contracts” dates into the early 20th Century, the time when cryptocurrency was not created. If someone is reading this article, they may already be familiar with “Ethereum” since it’s the second cryptocurrency after Bitcoin that was introduced. It is the same for both. Bitcoin and Ethereum utilize the technologies of Blockchain. What is a Smart Contract, and How Does it Work? What is a Smart Contract? Smart contracts are electronic contracts that can be programmed to include guidelines and agreements between the buyers and sellers that are executed when all requirements are fulfilled. Think about a situation where you want to buy an automobile from an acquaintance or a friend. The procedure appears to be an unending nightmare, with legalities and ownership transfers that involve a myriad of annoying intermediaries. If we integrate smart contracts in the framework, it will immediately transfer ownership once the funds are transferred. This can significantly cut down the time required as it is not dependent on mediators. What is a Smart Contract, and How Does it Work?
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