Comment on page
What are Smart Contracts?
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They are stored and replicated on the MANTRA Chain network, and the code controls the execution of the contract. The transactions that happen in smart contracts are trackable and irreversible.
Here's a more detailed breakdown:
- 1.Self-executing: The contract automatically enforces the rules and penalties of the agreement and automatically verifies fulfillment of terms, which can be seen by all parties.
- 2.Code-based: The terms of the contract are not written in legal language on a paper document but in a programming language, which is then deployed to a blockchain.
- 3.Decentralized: Once deployed, the smart contract resides on the distributed ledger of a blockchain, where it is carried out by a network of computers (nodes), making it resistant to a single point of failure.
- 4.Immutable: After a smart contract is created and deployed on the blockchain, it cannot be altered, ensuring a high level of security and trustworthiness.
- 5.Transparent: All transactions are visible to the relevant parties and in some cases to the public, depending on the blockchain's privacy settings.
- 6.Direct: They enable transactions and agreements to be completed without the need for a central authority, legal system, or external enforcement mechanism.
Smart contracts are widely used for a variety of applications, including but not limited to:
- Financial services: such as automated payments and programmable money.
- Supply chain management: for tracking the production, shipment, and receipt of products in a transparent way.
- Real estate transactions: automating the process of buying and selling properties and land without the need for traditional legal paperwork.
- Voting systems: creating tamper-proof and transparent voting mechanisms.
- Legal processes: for example, in the form of smart legal contracts that can act as traditional legal agreements with the added benefits of blockchain technology.
Developers typically create smart contracts on Cosmos blockchains, like MANTRA Chain, using CosmWasm. This allows developers to deploy immutable code to the MANTRA Chain, which then carries out smart contracts' functions on the blockchain.