WHAT ARE SMART CONTRACTS

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Smart contracts are computer programs which allow for the automatic transfer of digital assets between parties based upon pre-specified conditions. Smart contracts have been used primarily in association with cryptocurrencies. The most prominent smart contract implementation is the Ethereum blockchain platform, which also calls them decentralized applications, or Apps.

Smart contracts are computer programs which allow for the automatic transfer of digital assets between parties based upon pre-specified conditions. Smart contracts have been used primarily in association with cryptocurrencies..

Traditionally, we are used to applications which are hosted by a centralized organization. While the code of the application may be distributed across multiple physical servers, they are controlled by a single entity. For example, Facebook is a centralized app which is controlled by an entity called Facebook Inc. Decentralised apps, on the other hand, are not controlled by a central entity but are governed by code and the protocols set within them. These codes are generally open sourced and anybody can use them to create a new App of their own. Some Ethereum-based Apps that have been successful are Golem, Augur, and Melonport. These Apps have been able to achieve millions in market cap.

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