Section 3 // ●●○ Level: Medium Quick Links: 2: Blockchain 4: Wallets | 5: Tokens | 6: NFTs Dashboard: Web3 Starter Pack |

<aside> 🥡 KEY TAKEAWAY Smart contracts are programs stored on blockchain. They automatically execute when predetermined conditions coded inside of them are met.

</aside>

What are smart contracts?

Smart contracts equals to computer programs that live and run on a blockchain. Smart contract consists of:

👉 Code - its functions

👉 Data - its state

Both code and data reside on a specific address on the blockchain.

Smart contracts offer security, reliability and borderless accessibility. They can’t be deleted and each interaction with a smart contract is irreversible.

Smart contracts are used for:

• creating currencies
• storing data
• minting NFTs
• execute computations
• send communications

and etc.

How smart contracts work?

Smart contracts run as programmed i.e. they are automatically executed. Behind a smart contract is a logic followed by an IF➡️THIS➡️THEN➡️THAT structure.

Users interact with smart contracts and when a transaction is submitted, it executes a function that is defined (programmed) in the smart contract itself.

What are the benefits of smart contracts?