Smart Contract

Smart Contract

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Smart contracts are basically computer programs that execute automatically. They run on blockchains but for doing that predefined conditions need to be fulfilled. In other words, if “a” condition happens, then execute “b”. Smart contracts give instant results without involving a middleman. Smart contracts may include transactions between parties, sending messages, playing games, voting and so on. Once the process is completed the blockchain updates immediately with the new block. Once it is added to the blockchain it lives there forever and can not be changed. Smart contracts benefit from the blockchain’s security, permanence and immutability.

"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