Smart Contract

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Smart contract is a similar to a contract in the physical world, but it’s digital and is represented by a tiny computer program stored inside a blockchain.

More specifically, a smart contract is a piece of software that stores rules for negotiating the terms of an agreement, automatically verifies fulfillment, and then executes the agreed terms.

What’s the main idea of a smart contract? Since a smart contract removes reliance on a third party when establishing business relations, the parties making an agreement can transact directly with each other.