The advent and use of smart contracts represent a groundbreaking innovation within the realm of blockchain technology. These type of contracts have emerged as a transformative force, reshaping traditional agreements and transactions.
Smart contracts are programs stored on blockchain, that run when predetermined conditions are met. They are typically used to automate the execution of an agreement, so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. (IBM.com)
But while smart contracts offer many advantages, they also come with certain limitations.
The cryptocurrency Ethereum is the most commonly used blockchain in smart contracts. There are also other platforms such as Binance Smart Chain, Polkadot, Cardano, Solana, and Algorand.
It is the blockchain technology that underpins cryptocurrencies. The chain is typically managed by a peer-to-peer network of computers, for use as a public distributed ledger, where nodes collectively adhere to an algorithm to add and validate new transaction blocks. Once approved/ validated, the transaction is recorded on the ledger and can no longer be changed.