Like so many business ideas in the blockchain industry, a common confusion which is called ‘smart contracts’. Yes….!
A new trending technology that made possible by the public blockchains, smart contracts are little tough to understand because it partly confuses the core connection described in blockchain technology.
What is Smart Contract?
While a common contract represents the term of a relationship which is usually one enforceable by law, but here a smart contract enforces a relationship with the cryptographic code.
Smart contracts were first proposed in 1994, the idea was originally explained by computer scientist and cryptographer Nick Szabo as a kind of digital vending machine. Yes, and he described how users could input data or value, and receive a finite item from a digital vending machine.
How smart contracts used in cryptocurrency marketplace?
In a simple & real time example, ETH users can transfer 10ETH to a friend on a certain time or date by using a smart contract. In this case, the user would create a digital contract, and push the data to that contract so that it could execute the desired command.
Ethereum is a crypto platform which can build especially for creating smart contracts. Yes…!