How are smart contracts executed?

Smart contracts are executed through a combination of code and blockchain technology. When a smart contract is created, it is typically written in a programming language specifically designed for smart contract development, like Solidity for Ethereum. Once the contract is deployed onto the blockchain, it becomes part of the decentralized network. The code within the contract is then automatically executed when certain predefined conditions are met. This execution is driven by the consensus mechanism of the blockchain, which ensures every participant in the network agrees on the validity of the contract and its outcome. As a result, smart contracts eliminate the need for intermediaries and enable trustless, transparent, and secure execution of agreements.

This mind map was published on 17 November 2023 and has been viewed 71 times.