Smart Contract

What is Smart Contract?


Smart Contract is a program stored on Blockchain. Function(s) of that program is transparently executed in form of transaction in a completely distributed fashion on blockchain.
We can think of it as a state Machine which needs transactions to change state

Characteristics of Smart Contract

Smart Contract on Ethereum

To implement smart contract, we can use Ethereum blockchain. Ethereum uses proof of work consensus algorithm. Philosophy behind it states,

Transactions can have code attach to them which can be run on every node in network

Terminology

Opcodes


Transaction(s)


ABI


GAS

Summary

Any value that is tracked on a ledger for e.g. results of polling system, copyrights etc can be modeled into a smart contract, leveraging all the benefits of using Blockchain.

References

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