How do smart contracts work?

The unique nature of smart contract, that separates it from other contracts, is its elimination of third party(middleman business).

Unlike regular contracts, you don’t need a third party. It has been programmed in such a way that the buyers and sellers can initiate transaction once the conditions are met.

For instance, imagine you’re raising funds for your project using a smart contract. If your project got fully funded and met the criteria, the money(fund) will be automatically moved to your side. And the other way around, if your project fails to meet the programmed goals, money will be automatically transferred to the supporters. This is how a smart contract works!

For more info on smart contracts, you can click here