What Is A Smart Contract On Blockchain And How Does It Work?
A smart contract is a self-executing seller-buyer agreement that is directly inscribed into lines of code. Traceability, transparency, & irreversibility are its hallmarks. Automation of an agreement’s execution by smart contracts ensures the outcome’s certainty. Further, as no third party is involved, the transaction gets completed quickly. Here’s how the smart contract’s workflow is automated: the next action is triggered when certain conditions are met. While a traditional contract is enforceable by law, a smart contract on blockchain is enforceable by code. When was the need for a smart contract recognized? Nick Szabo, a legal scholar and a cryptographer, first used the term smart contract in an article in 1994. His theory was that these contracts could be written in code. So, these can be stored and replicated on the system. Moreover, smart contracts can be supervised by a network of computers comprising the blockchain. These could also help...