Smart contracts can be defined as Blockchain-based computer protocols which are virtual versions of regular contracts and are coded with predefined conditions. Smart contracts aim to offer high security while reducing transaction costs associated with conventional methods– traits that make them favorable alternatives to regular contracts.
What can Smart Contracts do?
It can function as a joint account so that funds can be spent only when all the parties agree unanimously.
- Manage agreements between users in the network.
- Provide utility to other contracts like a software library.
- Store information about an application such as domain registration information and such.