About Smart Contracts

In the cryptocurrency space, smart contracts can be defined as applications or programs that run in the blockchain. Usually, they function as a digital protocol enforced by following specific rules. These rules are predefined by computer code and are replicated and enforced by all network nodes. Blockchain smart contracts support the creation of de-trusted protocols. This means that both parties to the contract make commitments through the blockchain without the need to know or trust each other. Both parties determine that the contract will not be executed if the conditions are not met. In addition, the use of smart contracts eliminates the need for intermediaries, thereby significantly reducing operational costs.

mart contracts therefore have the following characteristics:

● Distributed: Smart contracts are replicated and distributed across all nodes of the Ethernet network. This is very different from other centralized server-based solutions.

● Deterministic: When requirements are met, the smart contract performs only the pre-designed operations. Moreover, the result remains consistent regardless of who performs it.

● Autonomy: Smart contracts perform various tasks automatically, as opposed to "self-executing" programs. In most cases, untriggered smart contracts remain "dormant" and do not perform any operations.

● Invariance: Smart contracts cannot be changed after deployment. A smart contract can only be "deleted" after implementing a specific function. So, we might say that smart contracts provide tamper-proof code.

● Customization: Before deployment, smart contracts are coded in a wide variety of ways. Thus, a great variety of decentralized applications (DApps) can be used to create them. This is closely related to the fact that Ether belongs to the Turing-complete blockchain.

● De-trusting: Two or more parties can interact through smart contracts without the need for mutual knowledge or trust. In addition, blockchain technology will ensure that data is accurate.

● Transparency: Smart contracts are based on a public blockchain, so the source code is not only tamper-proof, but also open and transparent to all.