How smart contracts work in blockchain A smart contract is an application (or program) created and running on the blockchain. This is a digital agreement in which compliance with a certain condition always leads to one result - the exchange of assets, rights, data. Elements of smart contracts: The platform on which the algorithm is written (e.g. Ethereum). Subject - assets to be exchanged on the basis of a smart contract (goods, services, crypt, data). Conditions that must be met for the exchange. Parties participating in the exchange with a unique digital signature. Oracles (as needed) are independent sources of external information.
A smart contract works like a deterministic program. It performs certain actions when specified conditions are met. Based on this, the smart contract system often uses expressions. Despite the generally accepted terminology, smart contracts are neither legal contracts nor smart contracts. These are just pieces of code running on the blockchain.
Smart contracts allow you to exchange assets without resorting to intermediaries. In addition, smart contracts do not just contain information about the obligations of the parties: the program code confirms the fulfillment of the terms of the contract and automatically determines what to do with the specified asset (transfer to the participant in the transaction, return to the sender, or something more complicated). All this time, a copy of this document is stored in the decentralized registry, which ensures its security and reliability and does not allow any of the parties to change the predefined terms of the contract. Try it FREEMOON FINANCE
A smart contract must interact with both the website of the online store and the payment system and with the mail, which has technological and legal risks. Therefore, smart contacts are now used mainly for operations related to the purchase / sale of cryptocurrency when the parties to the transaction have accounts on the same exchange or in a blockchain platform.
If you have a good command of a computer and can create programming and read the language of the program, then you can make a smart contract yourself or contact a specialized company for advice.
