Smart Contracts Explained
A smart contract is an agreement between two or more parties that is programmed to self execute whenever certain conditions are met. A smart contract is thus basically lines of code. A smart contract is usually run on a blockchain where transactions are efficiently verified and tracked. Smart contract transactions are transparent and not reversible.
This is means a smart contract cannot be changed or dishonoured. Because smart contracts eliminate intermediaries from financial transactions, it makes them not only cheap but also faster. Fraudsters however may use smart contracts to swindle unsuspecting investors of their money. This happens when a developer includes a bug in the smart contract with the sole intention of compromising the contract later. Smart contracts are the basis of Decentralized finance and Decentralized Autonomous Organizations. For more on what is a smart contract, see you in the video.
