Smart Contract. A smart contract [14] is a program that is executed by the consensus participants and its execution results are stored on the blockchain as new transactions. In other words, smart contracts allow blockchains to run arbitrary applications rather than a single specific application (such as digital currency in the case of Bitcoin). Smart contracts enable the implementation of new types of applications that benefit from the advantages of blockchain technology. Compared to traditional contracts and financial applications, smart contracts can enable better business automation (a smart contract can be executed automatically by the blockchain system when its execution conditions are met), increased transparency (the business logic and transaction correctness can be verified by anyone from the chain), high availability (the contract’s execution cannot be prevented by a single contract participant), and better privacy (business partners can enter contracts without using or revealing their real identities). Blockchains such as Ethereum and Hyperledger Fabric use smart contracts to store data on the chain. The Layer 1 software implements a virtual machine that runs the instructions contained in the smart contract. To store data on the blockchain one must write a smart contract that takes a data input and creates the transaction that gets stored on the chain. Smart contracts can be created and added to the blockchain at any time.
Appears in 2 contracts
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