What is Smart Contract?
In this article, we will explain how Smart Contract work and the benefits of Smart Contracts. Have a pleasant reading.
What is Smart Contract?
To put it simply, Smart Contracts are the transactions that happen automatically in the event of the conditions agreed by the two parties under certain rules.
As its name suggests, Smart Contract, which is not a very difficult process, actually has a very simple procedure. It has a simple two-phase transaction function: It works depending on the “If – It will” function. In this way, it eliminates third parties, which builds the basis of trust.
This situation provides confidence for the parties, because both sides are in a platform with the same conditions. One party has no chance of excelling over the other and turning the terms in favor. For this reason, it is a contract based on trust.
When Did It Appear?
The idea of Smart Contract was first introduced in 1993 by Nick Szabo. Szabo is thought to be Satoshi Nakamoto by some people because of his Bit Gold idea.
If we talk about the architect of Smart Contract and its applications, of course we cannot proceed without mentioning Vitalik Buterin, the founder of Ethereum platform. Buterin wants Blockchain to be used not only as a cryptocurrency but also in a variety of tasks. Software employees in this system are rewarded with fuel called “Ether” when they create a contract that can work anywhere in the world. In addition, machines pay Ether when they use this system.
How Smart Contracts Work
Commodities are determined and coding process starts.
After the determination process is completed, the terms of the contract are coded.
Commodities and conditions are entered as a block in the Blockchain.
Upon completion of the terms of the contract for both parties, the contract shall be ready for transaction.
Commodity transfers are carried out according to the terms of the contract.
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