How do smart contracts work?

Smart contracts are digital agreements encoded directly into blockchain networks like Ethereum, Binance Smart Chain, and Solana. Here’s how they function:

Predefined Rules: Smart contracts are programmed with specific terms and conditions.

Trigger Events: Once these conditions are met, the contract automatically executes actions, such as transferring funds or verifying ownership.

Decentralized Execution: Unlike traditional contracts, there is no need for intermediaries, reducing costs and processing times.

Source: helalabs.com

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