What is Smart Contract

A smart contract is a systematic protocol that is intended to digitally verify, facilitate or enforce the performance of a contract. Smart contracts allow the exchange of credible transactions without the need for a third party member. Block chain exists as a perfect example of a Smart contract owing to its decentralization between all permitted parties which allows transaction without the need to pay any intermediaries. What is Smart contract? Smart contracts allow you to exchange monetary funds, shares or property without any conflict by avoiding the services of an intermediary. Examples of Smart contract: A perfect example to Smart contracts is a Vending machine. Normally you would go to a notary or a lawyer to get your documents in place. Now imagine that you go to a vending machine and drop a Bitcoin in to it and it gives you the required document straight away. A Smart contract also defines the rules and regulations that a traditional agreement does and also automatically enforces those penalties. Uses of Smart contract: Government: Some people think that using Smart contract is not a viable way owing to security risks. But nevertheless, Smart contracts would nullify all those concerns by providing you with the best and more secure systems than before. ICO tokens: A Smart contract acts as a backbone of any ICO software. They enable minting of ICO tokens, their distribution, future earnings, resale and any inflation mechanics you choose.