What are Smart Contracts?

In my previous blog. I told you what is blockchain technology and we discuss why we need to learn this technology and also discuss benefits. If you want to know all of these things I will provide you a link at the end of this article. Now the question is what is smart contracts? Why and where we need this? So, now let’s start to read what are these.

Smart Contract:

Very long time the person with name Nick Szabo in 1994 introduces digital protocols to enforce performance, verify and negotiate the contract between two are more parties. Actually it is a self-enforcing agreement in a computer embedded in a computer that is managed by Blockchain. If some parties want to interact with each other they must agree with some set of rules that are embedded in smart contracts. In a simple way, it is a piece of code that is split third parties (middle-man) and saves money, time, and conflict. It allow the performance of credible transactions without third parties. These contracts are also known as digital contracts, blockchain contracts, and self-executing contracts. So, it is just a brief introduction to smart contracts. I hope you understand this concept. I will also provide how you write your own smart contract and deploy it in the upcoming blogs.

Why we need these Smart Contracts :

Smart contracts are used anywhere in today’s life. Now the question arises, what is the problem between these traditional contracts that we need to replace with smart contracts. So, first we discuss what is the difference between traditional contracts and smart contracts.

Traditional Contract:

There are some issues in the traditional contracts they are modified and changed easily. These contracts are bound by the legal terms and these contracts work on the institutional factors and requirements of the two parties involved and also intervention.

Smart Contract:

Smart contracts are a self-executing computer program. And these contracts cannot be modified or changed according to people’s will and cannot be tampered with. These smart contracts limit human interaction and interference. And they're also a list of reasons that we need these smart contracts.

Transparency

Time Efficiency

Safety

Trust

Cost Effective

Smart Contract and its uses:

Now in my point of view election is a very big problem. For governments, smart contracts running on the blockchain can make voting systems completely trust-less and much more secure. Applications like a name with FollowmyVote use smart contracts and blockchain technology to protect votes from fraud. When the voting transaction is written to the blockchain, it cannot be changed. So, there are also many applications that you can use for Business Application, Health Systems, etc. We can also automate our houses through smart contracts.

So, conclude all this we know what are these smart contracts, why we need and where. Now, you might be thinking that is okay but how we write smart contracts and how we interact and deploy your own first smart contract. So, you no need to be worry and panic in my next article I will show you, how you can write your own smart contract with the very basics in the upcoming article using solidity. Okay for now, take care, stay safe, and stay home.