What is a smart contract?

smart contract

How do smart contracts work?

  • The price of the car is $100.
  • The buyer will pay the seller $100.
  • If the buyer does not pay the seller $100, then the smart contract will not be executed, and the car will not be sold.

What are the benefits of using smart contracts?

  • Tamper-proof: Once a smart contract is deployed on the blockchain, it cannot be changed. This ensures that the terms of the contract will always be enforced.
  • Transparent: All parties involved in a smart contract can see the contract’s terms and the progress. This transparency helps to build trust between parties.
  • Fast: Smart contracts can be executed very quickly, as they do not need to go through a third party, such as a bank or a lawyer.
  • Cheap: Because smart contracts do not require a third party, they can be executed at a fraction of the cost of traditional contracts.

What are the risks of using smart contracts?

  • Irreversible: Once a smart contract is deployed on the blockchain, it cannot be changed. This means that if there is a mistake in the contract, it cannot be corrected.
  • Vulnerable to hacking: Because smart contracts are executed automatically, hackers can exploit them. If a hacker can gain access to a smart contract, they can execute the contract and steal any assets involved.
  • Rely on blockchain technology: If the blockchain technology on which a smart contract is deployed fails, the smart contract will also fail.

What’s next?

How do smart contracts work?

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3d Crypto Art

3d Crypto Art

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3D Crypto Art is a platform for all art lovers who want to invest in digital paintings using NFTs on the Ethereum network.