How does Blockchain smart contract work? — Layman Guide

I have started writing about blockchain this year since I am a lot interested in this emerging technology. In this article, I would be going through the concept of a smart contract and then explaining how does it actually work!

What is a smart contract?

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

But how does the smart contract actually work?

Smart contracts are tools that can automatically execute transactions if certain conditions are met without requiring the help of an intermediary company or entity. They are often associated with Ethereum, a blockchain that was designed to accommodate smart contracts, but the idea isn’t restricted to any particular platform or network.

Whether obvious or not, intermediaries permeate our digital lives. Even simply sharing a cat photo with friends online requires the services of an intermediary like Facebook or Instagram, which is a central authority that doesn’t just manage the network, but also sets the rules and enforces their violation. Smart contracts make it possible to automate these digital tasks without needing a centralized entity to…