{"id":10218,"date":"2024-06-07T06:27:11","date_gmt":"2024-06-07T06:27:11","guid":{"rendered":"https:\/\/realacademy.io\/?p=10218"},"modified":"2024-06-07T06:34:08","modified_gmt":"2024-06-07T06:34:08","slug":"smart-contract","status":"publish","type":"post","link":"https:\/\/realacademy.io\/index.php\/2024\/06\/07\/smart-contract\/","title":{"rendered":"Smart Contract"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10218\" class=\"elementor elementor-10218\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7ac7080a e-flex e-con-boxed e-con e-parent\" data-id=\"7ac7080a\" data-element_type=\"container\" data-settings=\"{&quot;container_type&quot;:&quot;flex&quot;,&quot;content_width&quot;:&quot;boxed&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ca4567e blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"ca4567e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.19.0 - 07-02-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>What is a Smart Contract<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f87106 blog-text-content elementor-widget elementor-widget-text-editor\" data-id=\"4f87106\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Smart contracts are typically used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary&#8217;s involvement or time loss. They can also automate a workflow, triggering the next action when predetermined conditions are met.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum has smart contract capabilities inherent to its blockchain. The Bitcoin blockchain received smart contract abilities after its Taproot upgrade, which allowed it to communicate to layers that have smart contracts enabled on their blockchains.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b32f73 blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"9b32f73\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Brief History of Smart Contracts<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34dae4b blog-text-content elementor-widget elementor-widget-text-editor\" data-id=\"34dae4b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Smart contracts were first proposed in 1994 by Nick Szabo, an American computer scientist who conceptualized a virtual currency called &#8220;Bit Gold&#8221; in 1998, 10 years before Bitcoin was introduced. Szabo is often rumored to be the real Satoshi Nakamoto, the anonymous Bitcoin inventor, which he has denied.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f122414 blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"f122414\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Use of Smart Contracts<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2800f4 blog-text-content elementor-widget elementor-widget-text-editor\" data-id=\"b2800f4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Because smart contracts execute agreements, they can be used for many different purposes. One of the simplest uses is ensuring transactions between two parties occur, such as the purchase and delivery of goods. For example, a manufacturer needing raw materials can set up payments using smart contracts, and the supplier can set up shipments. Then, depending on the agreement between the two businesses, the funds could be transferred automatically to the supplier upon shipment or delivery.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Real estate transactions, stock and commodity trading, lending, corporate governance, supply chain, dispute resolution, and healthcare are only a few examples where smart contracts can be used.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3525a4f blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"3525a4f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Pros of Smart Contacts<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e56ef4e blog-bullets elementor-widget elementor-widget-text-editor\" data-id=\"e56ef4e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li><span style=\"font-weight: 400;\">Efficiency: They speed up contract execution<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Accuracy: There can be no human error introduced<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Immutability: The programming cannot be altered<\/span><\/li>\n<\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9947d30 blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"9947d30\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Cons of Smart Contracts<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ccf796 blog-bullets elementor-widget elementor-widget-text-editor\" data-id=\"2ccf796\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li><span style=\"font-weight: 400;\">Loopholes: There may be loopholes in the coding, allowing for contracts to be executed in bad faith.<\/span><br \/><br \/><\/li>\n<li><span style=\"font-weight: 400;\">Human factor: They rely on the programmer to ensure the code is programmed properly to execute the intended actions<\/span><br \/><br \/><\/li>\n<li><span style=\"font-weight: 400;\">Permanent: They cannot be changed if there are mistakes<\/span><\/li>\n<\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8207254 blog-heading elementor-widget elementor-widget-text-editor\" data-id=\"8207254\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Conclusion<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-010ea65 blog-text-content elementor-widget elementor-widget-text-editor\" data-id=\"010ea65\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Smart contracts are code written into a blockchain that executes the actions two parties agree to outside the chain. By automating these actions, the need for an intermediary or trust between the parties is removed.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7515619a elementor-widget elementor-widget-text-editor\" data-id=\"7515619a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<!-- wp:html \/-->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Smart contracts, introduced by computer scientist Nick Szabo in 1994, automate the execution of agreements by ensuring all parties are immediately aware of the outcome without needing intermediaries or experiencing delays. These digital contracts enable trusted transactions among anonymous parties without central authority or legal system involvement. <\/p>\n","protected":false},"author":1,"featured_media":10219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Smart Contract - Real Crypto Academy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/realacademy.io\/index.php\/2024\/06\/07\/smart-contract\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Smart Contract - Real Crypto Academy\" \/>\n<meta property=\"og:description\" content=\"Smart contracts, introduced by computer scientist Nick Szabo in 1994, automate the execution of agreements by ensuring all parties are immediately aware of the outcome without needing intermediaries or experiencing delays. 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