What's Smart Contract?

 What is Smart Contract?

    Smart Contract is a program that runs in a blockchain with a purpose to make a transaction or contract can be held without any need for third party. Smart contract is usually used for transactions that happens in blockchain. By using the smart contract users, need to pay "gas" for fee to approve transactions. Smart contract works by letting users to accept the transactions and paying the gas fee and the cost for the transaction, by doing this blockchain will then process the transactions and can be checked in the blockchain data.

(Picture Contract)

The Inventor

    Smart Contract was first introduced by a cryptographer named Nick Szabo in 1994. He first used smart contract to record smart contract in form of codes. The codes runs automatically and when the condition met, the status will change to the condition was met. The purpose for the smart contact itself is to remove the third party for transactions and make the computer handle it. Then more than 10 years

later, Ethereum was created. Ethereum is the blockchain that first introduced smart contract for blockchain.

 

How Smart Contract Works?

    Smart contract works pretty easy to understand, as for example there are two parties that are agree to do transactions for this case we can use NFT. First the buyer will then first try to buy the NFT in the market place. The moment buyer want to buy it and proceed to buy it, a smart contract will then automatically popped out to remind the transaction that are about to happen. The moment the buyer pressed the accept button, the transaction will then immediately processed in the blockchain, and the buyer can checked it. The moment the process is done, the NFT will then moved to the buyer wallet address. And the "money" or the cryptocurrency will then be proceeded to the seller. Everything that happen in the blockchain and the process will be done automatically in the blockchain.