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Concept of smart contract in Blockchain
Last updated
Concept of smart contract in Blockchain
Last updated
A smart contract is a self-executing contract with the terms of the contract written in lines of code and stored in a decentralized ledger. They allow automation of contract execution and enforcement and can be used in a variety of applications.
Let's know a little about Blockchain and Smart contract.
A blockchain is a distributed, immutable, and decentralized ledger at its core that consists of a chain of blocks and each block contains a set of data. The blocks are linked together using cryptographic techniques and form a chronological chain of information. But what is the difference between smart contracts and blockchain? Blockchain acts as a secure and transparent platform that stores code and executes the logic of smart contracts. Blockchain's decentralized consensus mechanism verifies the validity of transactions and ensures that the execution of smart contracts is consistent across the network. A smart contract is a self-executing contract whose terms of the agreement between the contract's counterparties are embedded into lines of code. Essentially, a smart contract is a digital version of the standard paper contract that automatically verifies fulfillment and enforces and performs the terms of the contract.
Smart contracts do not need brokers or other intermediaries to confirm the agreement, thus, they minate the risk of manipulation by third parties. Moreover, the absence of intermediary in smart contracts results in cost savings. One of these contracts is the IGOCOIN smart contract created on the BSC chain.
