Introduction

Smart contracts introduce to the world in the late 1990s. Smart contracts are a set of protocols that secure the network structure. At the time, they used to cover basic computer networks.

Smart contracts can use in most cases, including credit system agreements, transaction processing, and payroll systems. Smart contracts in Blockchain are generally a kind of digital agreement between the two parties that work on a peer-to-peer trade. Any smart contract can execute on nodes of a Blockchain.

One of the problems with Blockchain is the lack of recognition of the other side of the deal. For this identification to legally performs on the network, a smart contract should use. In this case, both parties to the transaction work based on an intelligent contract, and violation of any law can lead to a breach of contract. On the other hand, the advantages of smart contracts include reducing the cost of transactions and other items in the Blockchain.

There were Smart contracts in the Bitcoin Blockchain, but its popularity has grown since Ethereum lunches. Each digital currency Blockchain can execute a Smart contract differently.

How smart contracts work

In general, Smart contracts implement a series of digital conditions, and their fulfillment includes the realization of transactions between the parties. Smart contracts are digitally signed and there are no paper or written documents in between. The only determinant in smart contracts is the condition that executes according to a code programmed in Blockchain-based on if, then foundations.

In Ethereum Blockchain, each smart contract has the task of performing transactions and operations on the block. Any intelligent contract is controlled in decentralized systems, and addresses that do not execute on the Blockchain are also known as EOAs and are managed by the users themselves.

Each Smart contract divides into three entities. A contract code and two public keys. The first public key determines the sender of the contract and the second public key determines its contract. The second key is generally a fixed identifier that indicates the nature of the contract.

Smart contract features

Ethereum Smart Contracts distribute across all nodes of a Blockchain network. Every Smart contract activates by fulfilling a series of conditions, without considering the person activating the conditions. Smart contracts use an autonomous system under which they can operate automatically. However, with the non-activation of the contract, this system remains dormant.

Smart contracts will not be subject to change after the conclusion. The only way to disable it is to delete it. Thus, any smart contract is a kind of anti-tampering code.

Due to the coding of these types of contracts, each can be used in different decentralized applications. Another benefit of smart contracts is the building of trust between people in the Blockchain. this allows two people who do not know each other to have a fair deal under this contract. Also, the source code of smart contracts is quite clear to everyone, and no one can change and manipulate the code after concluding.