Smart contracts automate the execution of contracts so that all parties may quickly discover the result without the need for a middleman or a delay.

These are computer programs that run exactly as their authors have coded or programmed them to. Smart contracts are enforceable by code, just like a conventional contract is by law.

When predefined circumstances have been verified to have been met, a network of computers will carry out the actions. These can entail paying out money to people, registering a car, sending out notices, or writing a ticket.

Smart contracts are an effective infrastructure for automation because they are not managed by a centralized administrator and are not subject to single points of attack by malevolent entities. This can decrease counterparty risk, boost productivity, cut expenses, and add new levels of transparency to multi-party digital agreements.

The bitcoin network was the first to employ smart contracts by using them to transfer value from one party to another.

However, the next significant development in smart contracts occurred after Vitalik Buterin published the Ethereum whitepaper in 2013. The Ethereum smart contract blockchain provided a “world computer” that could operate a number of independent smart contracts at once, as opposed to acting as a single smart contract application or providing a few restricted operational codes.