A Smart Contract is a protocol that ensures that certain conditions are met between users for the transactions to be carried out and helps the transactions to take place reliably. Smart contracts were introduced to users in 1994 by Nick Szabo in the form of computerized transaction protocols. Smart contracts are one of the fundamental structures of Ethereum. According to Ethereum.org's metaphor, smart contracts work in a similar way to vending machines. Simply put, smart contracts digitize contracts by translating the terms of a contract into computer code.

Smart contracts are used for transactions on the blockchain and the transactions are kept on the network. Transactions performed with smart contracts are not modified. Users remain anonymous in their transactions on the blockchain network. Smart contracts become functional when users fulfill the expected conditions on the blockchain network. The most important feature of smart contracts is decentralization. Transactions between users are not managed by a single authority and cannot be changed. Many countries have not yet regulated smart contracts.

How Do Smart Contracts Work?

Smart contracts are a contract model used to facilitate the exchange of goods or services. The main purpose of smart contracts is to optimize transaction costs and ensure that transactions are clearly monitored. All the terms of smart contracts are clear and cannot be violated. Smart contracts are implemented automatically. Smart contracts promise security and trust for every sector in which they are intended to be used.

Smart contracts on the blockchain can be created by anyone. The code of smart contracts is open, and once the smart contracts are in use on the blockchain network, they cannot be modified or closed in any way. Smart contracts can be written in various programming languages such as Solidity and Michelson. Nodes in the blockchain network have copies of smart contracts. The smart contract helps to achieve the consensus needed to verify and approve new transactions performed by nodes within the network.

How Did Smart Contracts Emerge?

Smart contracts were in use before blockchain technology was popularized by people. Smart contracts were first introduced in 1994 by Nick Szabo. Nick Szabo, a computer scientist, developed a cryptocurrency called BitGold in 1998. Szabo described smart contracts as computerized transaction protocols that execute the rules of a contract.

What Are Blockchain-based Smart Contracts?

Blockchain technology is the best way to store smart contracts because it is secure and immutable. It is almost impossible to lose smart contract data because smart contracts are encrypted and stored in ledgers. Smart contracts implemented with blockchain technology enable low-cost and efficient transactions. Blockchain-based smart contracts are preferred in many sectors. For instance, smart contracts used in the healthcare sector can automate service payments and reduce billing.

Blockchain-based smart contracts can be used in the music industry to record the ownership of music and pay royalties. At the same time, smart contracts also contribute to the automobile industry by storing information such as accidents or vehicle maintenance. Programming language applications are very useful in creating smart contracts that integrate with blockchain and ledgers

Why Are Smart Contracts Important?

Smart contracts enable the decentralized execution of transactions and the creation of cryptocurrencies. Smart contracts, which can be used in various fields, are stored on blockchain networks. Transactions carried out with smart contracts implemented using blockchain technology cannot be changed in any way, with some exceptions.

Smart contracts support decentralized applications and include DeFi technology. The DeFi technology covered by smart contracts allows cryptocurrencies to be included in financial transactions.

Where Are Smart Contracts Used?

Smart contracts are computer programs that run on the blockchain in an automated way. Smart contracts can be used to create many things such as NFTs, digital assets, graphs, and stable cryptocurrencies. Here are some of the areas where smart contracts are used:

• Stablecoin
• Digital assets
• Insurance
• Real Estate
• Health

What Are the Advantages of Smart Contracts?

Smart contracts have some advantages and these are the following:

• Smart contracts increase the speed of transactions carried out by organizations or companies.
• Smart contracts are decentralized and do not require a third party to manage the transactions.
• Smart contracts utilize blockchain technology and distributed ledger technology. The transaction data is recorded and stored in these technologies. It prevents the possibility of error in transactions that go through complex processes and automated processes are performed to execute transactions.
• Smart contracts protect all resources to make progress traceable throughout the transaction process. Smart contracts minimize transaction costs for organizations or companies.

What Are the Challenges with Smart Contracts?

Some of the problems with smart contracts can be as follows:

• Smart contracts can be vulnerable to hackers. For this reason, smart contracts should be programmed to deal with challenging situations they may encounter.
• Smart contracts are complex to manage and implement. Since the transactions performed with smart contracts cannot be changed, new contracts need to be developed.
• Although smart contracts benefit the user in terms of transaction speed, if a solution is not found in case of complexity in transactions, major damage may occur.

What Are Smart Contract Coins?

The cryptocurrencies of networks that enable the creation of smart contracts are called smart contract coins. Some of the smart contract coins are as follows:

• Ethereum (ETH)
• Binance Coin (BNB)
• Algorand (ALGO)
• Polygon (MATIC)

What Is the Automation Effect?

One of the main features of smart contracts is that they can be implemented in an automated way. Transactions on digital platforms are carried out faster and save the user money in terms of cost. The verifiability of wallets is very important in the transfer transactions to be realized on the digital platform. If the wallet is verifiable, an environment of trust and consensus can be formed between the parties.

By creating certain conditions, smart contracts save on legal costs and speed up transaction times. Smart contracts also reduce expenses for offices, companies, or institutions. In the process of transfer transactions, assets are paid instantly after the sender registers the transfer transaction.

What Is MetaSmartContract?

MetaChain is an EVM-powered network, so it processes smart contracts in all EVM-definable languages such as Solidity, Viper, Fe, Huff, Yul, etc.

MetaSmartContract is a community-endorsed smart contract library to meet users' smart contract needs. Audited smart contracts are specially tailored for MetaChain and are free to use.

Contracts have been created for the needs of each user who is supported by the community and wants to realize their projects within the Metatime ecosystem. At the same time, the contracts produced by the end user are included in the MetaSmartContrat system after the necessary audit and voting processes, allowing the smart contract library to grow.