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Web3 Fundamentals and NEAR

Smart Contract

Smart Contract

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Smart contracts are programs that are stored on a blockchain platform and run only when predefined conditions are fulfilled. Typically, they are used to implement agreements among participants, giving them immediate outcomes without any wastage of time or involvement of a middleman. Smart contracts are automated programs that continue the workflow by streamlining the next task when conditions are met.

They function by following programming statements like “if, when, then” written into a smart contract code. Once verified, a network of member computers executes the tasks.

These tasks may include transactions between parties, sending updated notifications, vehicle registration, or issuing a ticket. When the process is completed, the blockchain is updated immediately with the addition of a new block. And once it is added to the chain, no changes can be made to the transaction data, and only members who have permission to access it can see outcomes.

What is the difference between smart contracts and DApps?

  • Decentralized applications are blockchain-powered websites, whereas smart contracts work as API connectors that connect DApps with blockchain.
  • In decentralized applications, backend code runs on the decentralized program; on the other hand, a smart contract is a piece of DApp in the form of small code. In simple words, DApp utilizes smart contracts to function and directly connects a member with a provider.
  • In brief, decentralized applications are the technical combination of smart contracts and front end working as a complete computer program. On the other hand, smart contracts are a small portion of DApps.

For further information: Smart Contract

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