WHAT IS A SMARTCONTRACT?

A smart contract is a self-executing computer protocol created with the popularization of cryptocurrencies and made to facilitate and enforce the negotiation or performance of an agreement, providing reliability in online transactions. With the main objective of allowing unknown people to do trustworthy business with each other, over the internet without the need for intermediary from a central authority.

HOW ARE SMARTCONTRACTS CREATED?

Instead of being written on paper in legal language, they are implemented with programming language and run on a computer. In this protocol, strict rules and consequences are defined, in the same way as a legal document, declaring the obligations, benefits and penalties of those involved.

WHY ARE THEY BETTER THAN TRADITIONAL?

Furthermore, unlike a traditional contract, a smart contract is capable of obtaining information, processing it and taking appropriate actions in accordance with the rules of the contract.