Summary

Smart contracts are agreements written into code between different parties. The critical aspects of smart contracts is that they contain promises that are in digital form. All of these promises can be executed using digital protocols for communication performance. The outcomes of the contracts are triggered automatically.

At this point, you should have a solid understanding of what smart contracts are, how they work, and their strengths and limitations. You should be able to understand the dangers inherent in smart contract ecosystems and be able to gauge possible risks in the development of smart-contract-based systems. At a minimum, you should recognize the need for careful and thorough evaluation of smart contracts for security reasons. Remember, with smart contracts, the code is executed with little or no human intervention. A mistake in a smart contract means the damage done by the mistake will multiply as fast as the code can be run.

Next, we are going to dive into Ethereum further...