Smart Contracts

An automatic contract in blockchain that confirms a transaction after the stated conditions in the contract are met.

A Smart Contract is an automatic contract on blockchain networks that confirms transactions between sellers and buyers after the stated conditions in the contract have been met. This contract type was initially proposed by Nick Szabo in 1994. The ultimate goal of this proposal was to have contracts whose terms and conditions determined the setting and trust of the parties involved. As a result, buyers and sellers would never have to worry about duplicity. Crypto smart contracts were first used on the Ethereum network. It's now a blockchain staple.

Financial industries stand to gain a lot from the application of smart contracts in their transactions. Also, in crypto, these contracts are proven to be breach-proof, meaning that they offer an extra layer of security for users. Smart contracts launch is usually a significant milestone in a new blockchain's development.