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Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They are a key feature of blockchain technology, particularly associated with platforms like Ethereum. Here are some key points to understand about smart contracts:
- Self-Executing: Smart contracts automatically execute when predefined conditions are met. There is no need for intermediaries or a central authority to oversee the contract's execution.
- Immutable: Once deployed on a blockchain, a smart contract's code is typically immutable, meaning it cannot be altered or tampered with. This ensures the contract's integrity.
- Decentralized: Smart contracts run on blockchain networks, which are decentralized and distributed. This means there is no single point of failure, making the contract robust and resistant to censorship.
- Transparency: The code of a smart contract is usually open for anyone to inspect. This transparency builds trust among parties engaging in the contract.
- Trustless: Smart contracts reduce the need for trust between parties. Instead of relying on a third party, participants trust the code and the blockchain's consensus mechanism.
Smart contracts offer several advantages, such as reducing the need for intermediaries, reducing the risk of fraud, and increasing efficiency in various processes.
Check out this Blog to learn more about smart contracts and how they will be working in Blockchain Technology
