• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
How a smart contract works

How a smart contract works

user avatar

by Alexandra Smirnova

2 years ago


A smart contract is a self-executing program that automatically executes the terms of an agreement between two parties when certain predetermined conditions are met. These conditions are typically encoded as a set of rules or code, which is stored on a blockchain.

Here's a basic overview of how a smart contract works:

 

Stage Description
Creation A smart contract is created by a developer or team using a blockchain platform and then deployed onto the blockchain.
Execution After deployment, the contract waits for certain conditions, defined by the developer, to be met (e.g., specific date, time, or action by the parties involved).
Validation The contract must be validated by the network of nodes on the blockchain to ensure it is valid and has not been tampered with.
Execution Once validated, the contract automatically executes the terms of the agreement, such as transferring funds if it is a payment contract.
Recording The execution is recorded on the blockchain, creating an immutable and transparent record of the transaction, ensuring enforcement of the terms and eliminating disputes.

 

Smart contracts have the potential to revolutionize the way we do business by automating many of the processes involved in executing agreements. They are secure, transparent, and efficient, making them an ideal solution for a wide range of applications.

0

Share

Other articles

Tabi — A Modular Blockchain Platform for Web3 Gaming and Developers

Discover how Tabi Chain is revolutionizing Web3 gaming with modular architecture, Proof of Attention rewards, and a developer-friendly ecosystem.

user avatarElena Ryabokon

10 hours ago

The Blockchain Group: European Leader in Bitcoin Treasury and AI Blockchain Innovation

An in-depth look at The Blockchain Group — the first European company focused on Bitcoin Treasury strategy, AI development, and decentralized technologies. Includes analysis of its business model, investments, and tech evolution.

user avatarAlexandra Smirnova

13 hours ago

PenguinQuest: a quest-based game with in-game assets and progression in Telegram

PenguinQuest is a story-driven crypto game where players complete quests, develop characters, and earn tokens in a game world built on TON blockchain technology.

user avatarEve Adams

15 hours ago

Automate DeFi with Magic Newton: AI Agents, Web3 Gameplay, and Crypto Rewards

Magic Newton is a Web3 platform using AI agents to automate DeFi operations. Multichain support, security, gamified tasks, and airdrop opportunities in one crypto solution.

user avatarElena Ryabokon

16 hours ago

CasUnion Review: Gameplay, Tokenomics, and NFTs in a Web3 Casino Game

A detailed overview of CasUnion: gameplay mechanics, NFTs, tokenomics, and its future as a Web3 casino game by Kaizo Games.

user avatarElena Ryabokon

19 hours ago

Roxom — a Bitcoin-denominated platform for trading stocks, bonds, and derivatives

Roxom is a groundbreaking cryptocurrency project building a global exchange where all assets are traded and valued in Bitcoin. The platform offers spot and futures trading, IPOs, bonds, and a unique BTC-based infrastructure.

user avatarEve Adams

19 hours ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.