Smart contract definition
Smart contracts are just programs stored on the blockchain and run when
predetermined conditions are met. They are usually used to automate the
execution of the agreement so that all participants can determine the result
immediately without the involvement of any intermediary or loss of time. They
can also automate the workflow and trigger the next action when a condition is
met.
How smart contracts work
Smart contracts follow simple "if/when...then..." statements, which are
written into the code of the blockchain. When the predetermined conditions are
met and verified, the computer network will perform the operation. These
actions may include issuing funds to appropriate parties, registering
vehicles, sending notices, or issuing fines. Then update the blockchain when
the transaction is completed. This means that the transaction cannot be
changed, and only the parties with permission can see the result.
In a smart contract, there can be as many rules as possible to allow
participants to complete tasks satisfactorily. To establish terms,
participants must determine how transactions and their data are represented on
the blockchain, agree to the "if/when... then..." rules governing these
transactions, and explore all possibilities Exceptions and define the
framework for dispute resolution.
Developers can then program the smart contract-although more and more
organizations that use blockchain for business provide templates, web
interfaces, and other online tools to simplify the construction of smart
contracts.
Benefits of smart contracts
Speed, efficiency and accuracy
Once the conditions are met, the contract is executed immediately. Since smart
contracts are digital and automated, there is no need to deal with paperwork,
and no need to spend time coordinating errors that are usually caused by
manually filling in documents.
Trust and transparency
Because there is no third party involved, and because the encrypted record of
the transaction is shared between participants, there is no need to question
whether the information has been changed for personal gain.
Safety
Blockchain transaction records are encrypted, which makes them difficult to
crack. In addition, since each record is associated with previous and
subsequent records on the distributed ledger, hackers must change the entire
chain to change a single record.
Savings
Smart contracts eliminate the need for intermediaries to process transactions,
thereby eliminating related time delays and fees.
What Are Smart Contracts On Blockchain Cryptocurrency?
Reviewed by mattkaydiary
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六月 23, 2021
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Reviewed by mattkaydiary
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六月 23, 2021
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