Smart contract in Blockchain is a kind of software application that works without human intervention based on the transaction logs and provide solution to user request. I want to share the back end mechanism in Smart Contract of Blockchain.
Smart Contract Mechanism
What is Smart Contract
- A smart contract is a protocol which can auto execute, facilitate, verify or enforce the negotiation of a contract.
- Agreement between two parties you can say as a contract.
- Incorporating the rules of physical contract into computing world, you can say as smart contract
- Blockchain supports you to create smart contracts.
- Smart Contracts are self-executing programs which run on the blockchain and are capable of enforcing rules
- Using Blockchain as platform and making an agreement or contract between more than two parties, you can say as Smart Contract.
4 Top Benefits of Smart Contract
- Currently smart contracts are being used only in Crypto Currencies
- Now Smart Contracts being used in all financial transactions
- Smart contract can then raise funds for the foundation to complete a certain objective
- Primary benefit is to avoid middle men and to avoid fraud and cheating in the business world
Smart Contract Based Markets
When Smart Contract Initiated
- Smart contracts are self executed programs. So they run automatically whenever they need.
- Each Smart contract in Blockchain stored in a Block.
- Smart contracts have the following capabilities-self-execute, self-verify, self-enforce and self-constrain the agreement between two parties.
How many smart contract are present in Blockchain
- You can create 'N' number of smart contracts in Blockchain
- Smart Contract Manger over see all the transactions created in a network such that it avoids any fraud or cheating.