What is a smart contract?

A smart contract is a self-executing contract with the terms of the agreement directly written into code on a blockchain, which automatically enforces and executes the terms when predefined conditions are met.

How do smart contracts work?

Smart contracts operate on blockchain technology, where they receive inputs, process those inputs through coded logic (if-then statements), and produce outputs or actions without requiring human intervention.

What are the benefits of using smart contracts?

The benefits include increased efficiency through automation, reduced costs by eliminating intermediaries, enhanced security due to cryptographic principles, transparency from immutable records on the blockchain, and reliability in executing agreements exactly as programmed.

What platforms support smart contracts?

Several blockchain platforms support smart contracts, including Ethereum (the most popular), Binance Smart Chain, Solana, Polkadot, Cardano, and Tezos.

Can you give an example of a real-world application of smart contracts?

Yes. In real estate transactions, a smart contract could automate payments upon verifying that all conditions (such as property title transfer) have been met. This reduces fraud risk and eliminates the need for escrow services.

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