Tech Teacher

What is it?

A smart contract is a computer program that automatically executes actions when certain conditions are met. It runs on a blockchain.

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Tech Understandability: Intermediate

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Simple One-Sentence Definition

A smart contract is a self-executing agreement with the terms written in code.

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Analogy or Comparison

Think of it like a vending machine. You put in money and select a product, and it automatically gives you what you paid for.

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Why it matters?

Smart contracts make transactions faster and cheaper by removing the need for middlemen.

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Fun Fact

The concept of smart contracts was introduced by computer scientist Nick Szabo in the 1990s.

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Related Terms

Blockchain: Blockchain is a digital ledger that securely records transactions across many computers.

Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security.