A Smart Contract is a piece of computer code running on a Blockchain that contains a set of rules by which parties agreeing to that Smart Contract interact with each other.
If the predefined rules are followed, the agreement is automatically enforced. The Smart Contract code facilitates, verifies, and enforces the negotiation or execution of an agreement or transaction. It is the simplest form of decentralized automation.
It is a mechanism involving digital assets and two or more parties. Some or all of the parties contribute assets to the Smart Contract. According to a formula based on data that is unknown at the time the contract is initiated, these assets are distributed among the parties as soon as data matches the requirements.
Features of a Smart Contract
Smart Contracts are able to track performance in real-time and can produce huge cost savings. Compliance and control occur spontaneously. To obtain external information, a Smart Contract needs information sources that provide the it with such external information.
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