What is a Smart Contract in Blockchain Technology?

A smart contract is a self-executing contract with the terms of the agreement directly written into code. It automatically enforces and facilitates the negotiation or performance of a contract digitally without the need for intermediaries.

How Does a Smart Contract Work in Blockchain Technology?

In blockchain technology, smart contracts are stored on a decentralized ledger and are executed when predetermined conditions are met. The transactions involved in a smart contract are irreversible and transparent, providing security and trust among parties without requiring a central authority.

Smart contracts are typically written in programming languages like Solidity for the Ethereum blockchain. Once deployed, a smart contract can perform various functions such as transferring assets, verifying events, and triggering actions based on predefined rules.

Overall, smart contracts streamline processes, reduce costs, and increase efficiency in various industries by automating agreements and eliminating the need for manual interventions.