What Are Smart Contracts?

Smart contracts are computer protocols intended to facilitate, verify, or enforce the negotiation or performance of a contract. Many kinds of contractual clauses may be made partially or fully self-executing, self-enforcing, or both. The aim with smart contracts is to provide security that is superior to traditional contract law and to reduce other transaction costs associated with contracting. The most prominent smart contract implementation is the Ethereum blockchain platform.

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  • I still don't understand - what's the aim of smart contracts? 

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    • Katy  Hey Katy, the aim with smart contracts is to  provide  security  that  is  superior  to  traditional contract  law  and  to  reduce  other  transaction  costs associated  with  contracting.  The  most prominent smart contract   implementation is the Ethereum blockchain platform.

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  • As already discussed on several forums, smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

    The best way to describe smart contracts is to compare the technology to a vending machine. Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.

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  • Katy When I started to look for info about SC, I found this infographic as a good example. Maybe it will help you too and it is made by blockchainhub, so they know what they're saying :) 

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