Smart Contract

A Smart Contracts is a combination of code (functions) and data (state) that resides on an Ethereum blockchain. The functions can be executed based on events or data changes occurring on the Blockchain network to trigger some actions. Smart contracts are like a set of instructions that are executed automatically in a blockchain when a required condition is fulfilled.

For example: In a crowdfunding campaign, if the goal of ‘X’ amount is met then the Smart Contract will automatically release the funds to the charity organization but if the goal is not fulfilled then the Smart Contract will automatically refund all the funds back to the donors.

Smart Contracts are used on Blockchain networks to provide the functionality for external components to send data to be saved on the Blockchain. Smart Contracts use state variables whose values are permanently stored in contract storage. Smart Contracts can also perform validations and other processing and trigger actions such as payments.

Smart Contracts are written in a language called Solidity.