Ethereum Smart Contracts: How Do They Work

Digital 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.