What are Smart Contracts?

A Smart Contract is an application that runs on a blockchain network.

Developers write these contracts, then deploy them to a public blockchain network where people can interact with them.

Today, the leading Smart Contracts platform is Ethereum, but there are many others.

Smart Contracts are much like legal contracts except instead of legal language defining the terms, code dictates the contract’s terms.

Unlike traditional contracts which require a court to mediate disputes, smart contracts are self-executing with the blockchain’s immutability acting as a “judge’s ruling.”

Since Smart Contracts run on the blockchain, they are unstoppable with an auditable history, making them ideal for financial applications.

Smart Contracts are also flexible and can be used to build things like decentralized exchanges, tokenized assets, games and much more.

Many companies today have begun to take notice of smart contracts and their potential to build the economy of the future.