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What is Smart Contract ?

Smart contracts are computer programs or protocols for automated transactions that are stored on a blockchain and run in response to meeting certain conditions. In other words, smart contracts automate the execution of agreements so that all participants can ascertain the outcome as soon as possible without the involvement of an intermediary or time delay.

  • Smart contracts are self-executing contracts in which the contents of the buyer-seller agreement are inscribed directly into lines of code.
  • According to Nick Szabo, an American computer scientist who devised a virtual currency called "Bit Gold" in 1998, Smart contracts are computerized transaction protocols that execute contract conditions.
  • Using it makes the transactions traceable, transparent, and irreversible.

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