Ethereum Has The Ability To Run Smart Contracts

What Is Smart Contract?

The most important feature of Ethereum is its ability to run smart contracts. Smart contracts are essentially immutable computer programs that operate deterministically on the Ethereum blockchain. This immutability is a highly significant and powerful characteristic.

How Does A Smart Contract Work?

Once a smart contract is deployed on the Ethereum blockchain, its code cannot be altered or stopped. In contrast to traditional software, which can be updated or modified, the only way to make changes to a smart contract is by deploying a new instance of it.

The promise of smart contracts on open blockchains like Ethereum is revolutionary. In theory, any interaction between parties that can be automated can be encoded into a smart contract. These smart contracts can be trusted to execute as programmed without the need for intermediaries or the risk of censorship. This feature opens up a world of possibilities for decentralized and trustless transactions and agreements.