All you need to know about Smart Contracts

In the world of blockchain and cryptocurrency, the term “smart contract” has become increasingly popular in recent years. Smart contracts has revolutionized the way we conduct business transactions . So what are Smart Contracts ?

Smart contracts are self-executing computer programs that automatically enforce the terms of a contract. They were first proposed by computer scientist Nick Szabo in the 1990s, and have since been refined and expanded upon by a number of developers.

Unlike traditional contracts, which require intermediaries such as lawyers and banks to enforce them, smart contracts use blockchain technology to ensure that all parties comply with the terms of the contract. Thus they are decentralized, meaning that they do not rely on a central authority to enforce them .

But how do Smart Contracts work?

Smart contracts appear difficult to deal with . Yet , it could be summarized and simplified into 6 stages . They are as follows :

1- Creation :

Smart contracts are created by developers using a programming language called Solidity (There are several languages other than solidity such as Vyper , Yu) .

2- Deployment : Once the smart contract code is written, it is compiled into bytecode and deployed onto the blockchain. This is done by sending a transaction to the network that includes the bytecode of the triggered smart contract.

3- Triggering : Once the contract is deployed, it can be triggered by a specific action, such as making a payment to the contract or the fulfillment of certain conditions. This is done by calling a specific function written in the contract code.

4- Verification: The smart contract code automatically verifies the conditions of the contract using the rules provided in the code. In other words , if the contract is a payment agreement, it will automatically verify that the funds have been sent before releasing the payment .

5- Execution: Once the conditions of the contract are verified, the smart contract executes the code, which may include transferring funds, and performing numerous different tasks.

6- Completion: Once the contract is executed, the outcome results are stored on the blockchain, and the contract is considered complete. The contract can be audited and reviewed by anyone on the network, providing transparency and trust in the process.

I hope this summary enhance your knowledge about smart contracts . Stay tuned for more detailed information .