Smart Contracts on Ethereum:
They are programs or scripts that can be executed automatically when certain conditions are met without the need for third-party intervention.
The main idea is that these contracts run on the Ethereum blockchain and are executed once the conditions agreed upon between the parties are met.
Here are some common uses of smart contracts:
1. Decentralized Finance (DeFi): Smart contracts are used in applications such as decentralized lending, decentralized exchanges (DEX), and financial markets that do not require banks or intermediaries. For example, if two people agree to a loan, the smart contract can determine the amount to be loaned, the interest rate, the repayment times, and execute the transaction automatically.
2. Electronic voting: Smart contracts can be used to ensure the integrity and transparency of elections or referendums, so that each vote is recorded on the blockchain, making it immutable.
3. Digital ownership and rights: For example, smart contracts could be created to regulate the buying and selling of real estate or digital assets, such as NFTs.
The contract is concluded when the conditions agreed upon between the parties are met and ownership is transferred automatically.
4. Supply Chains: Smart contracts can be used to ensure traceability of products in supply chains, so that the status of each product is updated automatically and reliably from the point of manufacture to final distribution.
5. Insurance: Smart contracts can facilitate the mechanism of insurance compensation payments. If a condition is met (such as bad weather or a specific accident), the payment is automatically executed to the beneficiary without the need for an intermediary.
