Smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.
Contract accounts are able to pass messages between themselves as well as doing practically Turing complete computation. Contracts live on the blockchain in a Ledgerium-specific binary format called Ethereum Virtual Machine (EVM) bytecode.
Contracts are typically written in some high-level language such as Solidity and then compiled into bytecode to be uploaded on the blockchain.
IDE-or-development-framework lists the integrated development environments, developer tools that help you develop in these languages, offering testing, and deployment support among other features.
What are the benefits of smart contracts?
The benefits of smart contracts go hand-in-hand with blockchain.
Speed and accuracy
The automated smart contracts remove manual errors, maintain exact computer code and thereby greatly reduce the time spent in processing paperwork.
All contracts run as per pre-agreed terms and rules and encrypted transaction records are shared amongst participants. Thus, the transparent functioning of smart contracts inculcates a feeling of trust among the blockchain network.
As all transaction records are encrypted, making it very difficult to hack and change any individual record. Each individual block/record is connected in a chain of previous and subsequent records on a distributed ledger. The whole chain would need to be altered for modifying a single record.
Smart contracts remove the need for intermediaries because participants can trust the visible data and the technology to properly execute the transaction. There is no need for a central authority/third-party to validate and verify the terms of an agreement because it is built into the code.