What is a smart-contract and how does it work?

A smart-contract is a computer protocol that allows contracts to be set up in an automated way. These contracts are executed by a computer system without human intervention, which gives them a certain transparency and impartiality.

Smart-contracts are often associated with blockchain technology, also known as blockchain technology. Blockchain is a distributed and secure database that allows records to be stored permanently and tamper-proof. Each record is called a block, and each block is connected to the previous block by a security link called a hash. This blockchain is accessible to all, which ensures the transparency of the recorded data.

Smart-contracts are computer programs that are stored in the blockchain and are executed when certain predefined conditions are met. For example, we can imagine a smart-contract that  transfers money from account A to account B when a payment date is reached. If the payment date is reached and the money is available on account A, the transfer can be made by account B by calling the smart-contract.

Smart-contracts can be very useful in the business world, as they allow contracts to be set up quickly and efficiently. They are also interesting from a security point of view, as they can only be changed under certain conditions once they have been registered in the blockchain. This ensures that the terms of the contract are not unduly altered.

It is important to note that smart contracts are not without risks. This is because they can be designed in such a way that they are difficult for uninitiated users to understand, which can lead to comprehension problems. In addition, they can be victims of computer breaches that can affect their operation. It is therefore important to ensure the quality of smart-contracts before using them.

In conclusion, smart-contracts are computer protocols that make it possible to set up contracts in an automated way.