About smart contracts

Published 14 September 2021


A smart contract is a protocol that digitally facilitates, verifies, or enforces certain conditions.

For example, a company sells its shares, and an investor wants to buy them. To draw up a regular contract, you need to involve a lawyer who will check all the conditions. In a smart contract, these functions are performed by a “smart” code. It will monitor compliance with all conditions and automatically distribute assets between the participants. If one of the conditions is not met, the smart contract is invalid.

Benefits of smart contracts:

▪️ they are autonomous. The absence of third parties help to avoid unnecessary costs of paying for their services;

▪️ they are fast. Code checks conditions much faster than people;

▪️ they are safe. The code inherited blockchain features: the terms of the contract cannot be changed or canceled. Its data is stored in a distributed ledger and verified by each node in the network.

Smart contracts are used in crowdsale (most often on Ethereum) and tested in insurance, audit, and logistics.

WhiteBIT Team

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