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What Are Smart Contracts?

#Smart contracts are self-executing contracts that use blockchain technology to automatically enforce the terms of an agreement. They are computer programs that run on a blockchain and can #facilitate, #verify, and #enforce the negotiation or performance of a contract without the need for intermediaries. Smart #contracts can be used in a wide range of applications, including finance, real estate, supply chain management, and more.

They are designed to be #secure, #transparent, and #tamper-proof, with all transactions being recorded on a public #ledger that is accessible to all parties involved. Smart contracts eliminate the need for intermediaries, reduce costs, increase efficiency, and improve the overall #transparency and #trustworthiness of transactions.

Smart contracts have the potential to revolutionize the way we conduct business and interact with each other. They offer greater #transparency, #security, and efficiency, and can help reduce the #costs and risks associated with traditional contract enforcement.

Benefits of Smart Contracts ?

Distributed β€”>
Smart contracts are replicated and distributed in all nodes of the #Ethereum network. This is one of the major differences from other solutions that are based on #centralized servers.

Deterministic β€”> Smart contracts only perform the actions they were designed to, given the requirements are met. Also, the outcome will always be the same, no matter who executes them.

Immutable β€”> Smart contracts can't be changed after deployed. They can only be "Deleted" if a particular function was previously implemented. Thus, we may say that smart contracts can provide tamper-proof code.

Customizable β€”> Before deployment, smart contracts can be coded in many different ways. So, they can be used to create many types of #Decentralized applications (#DApps).

Trustless β€”> Two or more parties can interact via smart contracts without knowing or trusting each other. In addition, #blockchain technology ensures that data is accurate.

Transparent β€”> Since smart contracts are based on a #public blockchain, their source code is not only #immutable but also visible to anyone.