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.

The process by which the state of a blockchain on a particular block height is recorded.

Snapshot refers to the process whereby the state of a blockchain of a particular block height is recorded. It is designed to be used for a specific duration of time. When not properly utilized, snapshots can lead to an excessive accumulation of data, one that tends to get mixed up and eventually becomes useless.

During airdrop events, snapshots serve as tools for recording the balance token of token holders at a particular block height. This ensures that each token holder is verified as being qualified to participate in that distribution round.

The terminology has recently adopted a broader meaning. An exchange can take a snapshot of users at a specific point to decide who gets rewards and in what proportion. A snapshot of token holders is also an important aspect of new token launches on most reliable platforms.

A ratio that is used to determine potential Returns on Investment (ROI) compared to its risk.

Sharpe Ratio is a ratio that is used to determine potential Returns on Investment (ROI) compared to its risk. This ratio is useful to investors because it helps them to recognize whether an investment is worth the risk or is just another unprofitable one with no reasonable chance of bringing significant ROI.

Generally, experts advise investors who want to choose profitable investments with strong ROIs to choose those with high Sharpe ratios. These investments hold greater potential for profits than the risks.

Smart Contracts

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