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Any contract contains the terms of an agreement that the parties (usually two of them) must fulfill. The terms come into effect when both parties sign the contract. The terms are usually written on paper, and compliance is verified by a third party, such as a bank, lawyer, or other intermediary.&#x1f4d1;A smart contract is the same contract, but in a digital coding format. That is, the conditions in a smart contract are executed in the form of a code that is stored on a blockchain. This makes it possible for both parties to perform transactions on the terms specified with the code automatically and without the involvement of a third party.<h2 id="header-0">How does it work?</h2>Terms in a smart contract are written by programmers using the &#34;if/when...then...&#34; algorithm. The contract is then deployed on the blockchain. The terms from that point on cannot be changed. So it is impossible to &#34;forge&#34; the conditions backed by the blockchain. This approach makes transactions more secure. Anyone can create and deploy a smart contract on a blockchain. All one needs is the appropriate programming skills. Moreover, this code is open and transparent, which means anyone can find out what logic or conditions the contract works on.&#x1f4a1;A transaction is approved only when the predefined conditions of the contract are fulfilled and verified. If the transaction is approved by the contract terms, it is recorded on the blockchain.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/cd7c562d71fc4f3aab6274618ac15a0c.png" /><h3 id="strong-some-smart-contract-related-facts-strong">Some smart contract-related facts:</h3>⚡️Ethereum is the most popular smart contract platform. Others include Tezos, Polkadot, Tron, Algorand, etc.⚡️Smart contracts are the backbone of decentralized applications (dApps) that include decentralized finance (DeFi) technology.⚡️The scope of decentralized applications extends from financial systems to games.⚡️The idea of smart contracts was first proposed in the 1990s by Nick Szabo. He compared their essence to vending machines: they can be programmed on such terms that you can buy a soda for a certain amount of coins or get change if you put extra coins in the machine. So, the whole process takes place without the salesperson being involved.<h2 id="header-1">What are the benefits of smart contracts?</h2>✅SecurityA record of transactions made under the terms of a smart contract kept on the blockchain. It cannot be modified as it continues/supplements the chain of previous transactions. If a hacker wants to change one transaction record, he or she has to change the whole chain, which is difficult and almost impossible.✅SpeedIf the contract terms are fulfilled, the contract is executed straight away. Transactions are automated, with no third-party involvement and no time-consuming documentation processing.✅TransparencyAll relevant parties of the contract have full visibility and access to its terms simultaneously, i.e. it is almost impossible to manipulate the contract points. Blockchain also guarantees that the data remains unchanged, which means that breaches of contract terms are reduced to zero.<h3 id="follow-official-oneart-channels-to-find-the-latest-info-and-updates">Follow official OneArt channels to find the latest info and updates:</h3><ul><li><a href="https://twitter.com/art_wallet" rel="noopener noreferrer nofollow">Twitter</a></li><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://coinmarketcap.com/community/profile/OneArt" rel="noopener noreferrer nofollow">CoinMarketCap Community</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li></ul>

What are Smart Contracts?

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