°A smart contract is an automated digital agreement that executes independently when predetermined conditions are met

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°The contract code is stored on a blockchain and executed automatically without human intervention, ensuring reliability and transparency.

°Smart contracts are widely used in the DeFi sector and with NFTs.

°Smart contracts are faster, cheaper, more transparent, and fully automated, while traditional contracts depend on human processing.

°Oracles make it possible to bring external data to the blockchain, which is essential for real-world applications.

°The concept was introduced in 1994 by Nick Szabo. Ethereum brought it to the mainstream in 2015 as the first smart contract platform.

📍How do smart contracts work?

A smart contract consists of programming code stored on a blockchain. The code describes very detailed conditions. It can be programmed as extensively as desired. When the conditions are met, the smart contract (once accepted in advance by both parties) is automatically executed. This might happen when a payment is made or a delivery is confirmed.

The operation is transparent: the outcome is visible to all involved parties and cannot be changed afterward because the contract is stored on the blockchain.