As you may here these days from any media for Ethereum, Smart contracts and so on, you may be curious to know or find out what the meaning is. How to understand it and more and more questions about it. Because the term "Smart Contract" is so new, few people should have understanding on it. I'd like to share with you my knowledge (as it is not very technical) with you.
So what is a smart contract?
If you are familiar with blockchain technology, smart contracts have meaning with Ethereum Blockchain.
A smart contract is a software code in Ethereum blockchain that could be executed if some conditions are met. All these conditions are hardcoded within that code of software and when the code runs and if the conditions are met, then some predefined code will automatically executed by certain rules and after that if it is successful a payment transaction or another task would be triggered.
By this concept and as every contract history is recorded on blockchain so that contract would be immutable and no one can change it, forge it or cheat the other party. That's the big innovation of smart contracts.
Image source:
Source:
https://coinsutra.com/smart-contracts/
Hamidreza Asgari
June 29, 2017