A smart contract is a computer programme or transaction protocol that is designed to execute, control, or document legally significant events and activities in accordance with the conditions of a contract or agreement. The term smart contract was proposed in 1994 by an American cryptographer and a computer scientist, Nick Szabo. The smart contract is a self-executing contract in which the conditions of an agreement between a buyer and a seller are directly encoded into lines of code. The code, which contains all of the agreement provisions, is stored in a distributed, decentralised blockchain network. The code of the contract itself consists of the terms of the contract in concern. It is important to note that once the smart contract has been released, even the creator or owner can not change its terms. Complete execution and completion of the contract does not require physical documents or submission. A user can be anonymous, but the transaction details are very well recorded as well as registered.
The terms of the contract are defined in code of the contract itself. Smart contracts interpret, verify and automatically execute transactions in terms. To understand how smart contact works, let’s take the following example: there is a contract to sell pen which is made into a smart contract. The buyer will pay the seller the price of the pen, as soon as the payment is received, the code executes the transactions in line with the contract terms as specified in the code. The seller will receive a receipt when the transaction is successful and will release the pen. The system works on the If-Then principle, and hundreds of people involved in the blockchain will observe the transaction and become witness to the contract. If the seller gives the pen, then he will surely be paid. If the buyer pays the amount, then he will surely receive the pen. One action will not be completed without the other. Smart contracts, like traditional contracts, specify the rules and penalties that apply to an arrangement, but they also carry out those responsibilities automatically.
Aishwarya Says:
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
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We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge