What is Smart Contract?

What is Smart Contract

What is Smart Contract ? A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties.

One of the best things about the blockchain is that, because it is a decentralized system that exists between all permitted parties, there’s no need to pay intermediaries (Middlemen) and it saves you time and conflict. Blockchains have their problems, but they are rated, undeniably, faster, cheaper, and more secure than traditional systems, which is why banks and governments are turning to them. Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman .the best way to describe smart contracts is to compare the technology to a vending machine.
Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With Smart Contracts, you simply drop a Bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. In fact, a Smart Contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized Blockchain network. The code controls the execution, and transactions are trackable and irreversible.

Smart Contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. While Blockchain technology has come to be thought of primarily as the foundation for Bitcoin, it has evolved far beyond underpinning the virtual currency.