Ethereum Smart Contracts: How Do They Work
by Blockchain council Blockchain certificationsDigital currencies are no more an alien concept. There
are widespread use and application of the same. When we talk about digital
currencies, then the first thing that pops up is Bitcoin, but several other
currencies surged after Bitcoin and have a profound impact on the market. One
such currency is Ethereum. One of the notable features of this cryptocurrencies
is that it is also an open-source Blockchain platform. Ethereum is the second-largest
digital currency after Bitcoin. Owing to the multitudinous nature of Ethereum,
there is a higher demand for Ethereum experts. Many individuals are looking
forward to Ethereum certification.
Smart
contracts are an integral part of Ethereum; in fact, it is the greatest boon
that has led to the most significant transformation in the industries. In this
blog, we will discuss the functioning of smart contracts and what role it plays
in helping the industries become more efficient.
Smart Contract-
In simple words, a smart contract is a pre-programmed contract that runs on the Ethereum platform. It promotes the exchange of property, shares, money, or anything of value transparently. Moreover, this is an intermediary free contract wherein direct transfer takes place between the two interested parties.
One has
to learn solidity to prepare the smart contract. These find applications in
real estate, healthcare, finance, etc.
Here We Present You A Simple Example Of How Does Smart
Contract Work:
Let’s say
that you want to rent an apartment from A. You can do this via Blockchain, and
the payment is made in cryptocurrency. You will get a receipt that is held in a
virtual contract, and A gives you a digital entry key which comes to you on a
specified date. If the key doesn’t reach you on time before the rental date,
then the contract releases the refund. If A sends the key before the rental
date, the function holds its release of key and fee until the respective date
arises.
In simple
words, a smart contract works on the If-Then system. This is an entirely
automated system that works like If a condition is met, then the payment is
made. With this simple concept and without the interference of a third-party,
you have a contract that functions seamlessly.
These
features can use smart contracts for all kinds of uses, like paying the
insurance premium, property law, breach contract, financial services,
crowdfunding agreements, and legal process.
What makes smart contracts unique?
Here are
the key features of a smart contract that makes it inevitable:
1. It is
autonomous
2. Smart
contracts work automatically
3. It is
a completely safe contract as the information is encrypted cryptographically
4. This
works fast as you don’t have to wait for validation. Once the condition is met,
the payment is executed
With all
these features, smart contracts have become so popular. Since most of the
companies are now inclining towards smart contracts, there is going to be a
great demand for Ethereum expert and smart contract developers.
Conclusion
Blockchain
Council is providing Ethereum certification. As a part of this certification
program, you will learn about smart contract development, decentralized
application, and other uses. You will get to know how to develop a smart
contract and its successful execution.
For more
information on Blockchain certification, connect with
Blockchain Council today.
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Created on Jul 6th 2020 04:17. Viewed 336 times.