What is a SMART CONTRACT?

Smart contracts are self-executing programs that are written in code (</>) and stored in the blockchain network; they only take effect when all requirements are met by the parties involved.

Smart Contracts were popularized in the early 1990s by Nick Szabo. For a Smart Contract to work, the principles of “if/when… then…” must be applied.

SOME CHARACTERISTICS OF  SMART CONTRACTS;

• Immutable; cannot be altered or erased.
• Self-executing; effects and actions are carried out automatically.
• Self-verification; authentication is carried out to ensure all rules were followed.
• Interruption Free; once they are started execution, they cannot be stopped.

SOME USE CASES OF  SMART CONTRACTS;

• Digital Identity; provides individual identity in digital assets, removes counterfeit.
• Property Ownership; certification of an item can be guaranteed
• Peer-to-Peer transactions; a substitute for a middleman or escrow service.
• Voting; voters’ identities are easily verified.

Link between NFTs and Smart Contracts:

NFTs are digital assets that are stored in the blockchain, to make claims of ownership or benefits attached to an NFT, Smart Contracts are used as documentation.

Stay Tuned and keep learning…