5. What are smart contracts?

Created by Arjun Rituraj, Modified on Mon, 18 Dec, 2023 at 5:39 PM by Arjun Rituraj

Basically, smart contracts are computer programs that make it easier to verify, manage, or execute an agreement. They work on a blockchain, which will handle all the stuff in the contract, so you don't need any middlemen to make sure everything gets done.


Once smart contracts are executed, these transactions are traceable and cannot be undone. Smart contracts allow for the exchange of trust-based transactions and agreements between multiple, anonymous parties, without the reliance on a centralized authority, legal framework, or outside enforcement mechanism. While blockchain technology has primarily been used as the basis for Bitcoin, it has expanded to encompass more than just a virtual currency. 

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