A Smart Contract, also known as a crypto contract, is a computer program that controls the transfer of digital assets between people under certain conditions. This means that it works just like a regular contract but it is automatic and does not need human intervention. It is enforceable by code, just like a traditional contract is enforceable by law. The bitcoin network was the first to use some type of smart contract to transfer value from one person to another. Later, the Ethereum platform was developed, which allowed programmers to create custom contracts using a more powerful language. Other smart contract platforms include Solana, Polkadot, Hyperledger Fabric, and others.

:black_small_square:Here are the essential characteristics of a smart contract:

Distributed: All parties on the network have a copy of the smart contract, and no one party can change the conditions without consensus.

Deterministic: Smart contracts can only perform specific functions when required conditions are met, and the outcome is predictable.

Immutable: Once deployed, smart contracts cannot be changed, but they can be removed if the functionality was implemented before.

Autonomy: Smart contracts are made by the parties involved and executed by all nodes on the network, removing the need for intermediaries.

Customizable: Smart contracts can be modified or customized before being launched to perform the desired function.

Transparent: Smart contracts are stored on a public blockchain, making the code visible to all parties involved.

Trustless: Smart contracts do not require third parties to verify integrity or check conditions.

Self-verifying: Smart contracts can verify themselves automatically.

Self-enforcing: Smart contracts enforce themselves when conditions and rules are met at all stages.

These essential characteristics make smart contracts a unique tool for securing transactions in a decentralized and transparent way.
Source: Geeksforgeeks
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