(as of May 14,2020 16:43:17 UTC – Details)
In the world of cryptocurrencies, we can define a smart contract as a software application or program that runs on a blockchain. Usually, they work like a digital contract is carried out by means of a specific set of rules and regulations. These rules are predefined by the computer code, which is to be repeated, and is performed by all nodes on the network.
Essentially, the blockchain and smart contracts to allow for the creation of a trustless protocol. This means that the two parties ‘ commitments over the blockchain, without having to know or trust each other. They can be sure of is that, if the conditions are not met, the contract will not be executed. Other than that, the use of smart contracts will be able to remove the need for intermediaries, to the lowering of operating costs.
Even though the Bitcoin protocol for smart contracts for years to come, and they have been made popular by the creator and co-creator of Ethereum, Vitalik Buterin. It is to be noted that each of the blockchain may be an other way to implement smart contracts.