What Does Smart Contract Mean?
A smart contract is a computer protocol that facilities the transfer of digital assets between parties under the agreed-upon stipulations or terms. It is similar to a traditional contract in most ways including definition of rules and penalties around the agreement except for the fact that it can also enforce the agreed-upon obligations automatically. With blockchain technologies and bitcoin adoption, smart contracts are becoming popular in usage.
Techopedia Explains Smart Contract
Modern digital platforms and applications have helped in making the adoption of smart contracts easier. A smart contract automatically enforces the conditions by taking the information in the contract as input and assigning values to these inputs. These values then help in execution of required actions under contractual clauses. Smart contracts are mostly stored on blockchain technology due to the security and immutability of the technology. Smart contracts which are blockchain based are visible to all users of the specific blockchain.
