Smart Contracts & Crypto

What is a smart contract?

As the name implies it is a contract, like any contract, it creates the terms of an agreement. Unlike traditional contracts, the a smart contract’s terms are written as code using blockchain technology. Smart contracts are used in the crypto world but they also play a huge part of everyday technology, they can be used by developers to build many different types of technologies like apps, gaming, document preservation, payrolls, logistics, allowing the world to take advantage of the security blockchain creates.

Why are smart contracts important?

Using smart contracts allows developers to create a variety of decentralised products, apps, gaming, document preservation, payrolls, logistics, any data that is stored on a blockchain just like crypto transaction. Generally once a smart contract app has been added to a blockchain. Apps that powered by a smart contract often get referred to as decentralised or dapps and decentralised finance DeFi technology aims to replace the centralised banking industry. DeFi apps will allow crypto holders to take part in financial transactions like insurance, saving, loans eliminating a financial institution or bank.

How a smart contract works?

Smart contracts are a set process that is written in code on a blockchain. A network of computers process the actions when the conditions of the smart contract have been met and verified they are added to the blockchain. Actions can vary depending on what the smart contract is based around, vehicle registration, issuing a tickets, financial transactions, When each transaction is completed and verified the blockchain in updated.