A beginner’s guide to smart contracts – Crypto Daily

With the blockchain technology everywhere in this modern age, it’s nothing but flex to enter into any cryptocurrency system paying in and getting tokens in return. The smart contract is what makes this move possible. With the vast changing technology and the rise in blockchain application, it’s essential to know what “smart contract” is.

What is a smart contract?

Contracts are virtually as old as man; it means a legally binding agreement that governs and recognizes the rights and duties of both parties in a deal. A smart contract is a self-executing contract that helps exchange property, money(in the form of currency), and other services. The motive behind the creation is to remove all paper works, a smart contract “smart” as the name implies, involves removing the middle man whose role was to be the enforcer of the contract. The entire idea works like a vending machine; you pay some money, and in return, you automatically get your goods or service. All these are done without the excessive paperwork a contract brings. In many cases, you pay money into a blockchain, which of course, is decentralized, and it throws out some tokens. The code becomes the middle man removing the need for a lawyer or anyone authorized to perform legal affairs.

Why smart contracts

Every industry today craves for a digitized and automated system. Like in every commercial setting, having a middleman is essential for blockchain; in this case, the middleman is a code. You enter into the blockchain, which in this