What is a Smart Contract?

What is a contract?

A contract is just an agreement between two parties.

A smart contract is an agreement between two parties on the blockchain.

What makes it smart?

Typically, a smart contract is enforced by a third party.

A "smart" contract is enforced by code living on the blockchain.

Why are smart contracts so useful?

Needing a third party in an agreement is often necessary. But third parties will need to be trusted and can often be expensive.

Using a smart contract as our third party will remove the need for trust and will also cut out the middleman so to speak.

Examples (TODO)

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