Smart Contractsare self-executing computer programs that automatically enforce, verify, and facilitate the terms of a contract when certain conditions are met. These programs run on blockchain networks and eliminate the need for intermediaries by automating transactions based on predefined rules coded into the contract.
Key Details:
Automation and Trust: Smart contracts are crucial in blockchain technology because they enable trustless transactions, meaning parties can transact directly without relying on intermediaries. The code controls the execution, and transactions are transparent and irreversible.
Use Cases: Smart contracts are foundational to decentralized finance (DeFi) applications, supply chain management, digital identity, and more. They facilitate various operations such as lending, borrowing, insurance, and automated asset transfers.
Example in Ethereum: Ethereum popularized smart contracts by providing a platform with Turing-complete scripting capabilities. This allowed developers to create sophisticated decentralized applications that execute on the blockchain.
In conclusion,D. Smart contractsis the correct answer as it refers to the technology that automates transactions and eliminates the need for intermediaries.
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