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Smart Contracts: the Backbone of Cryptocurrencies

Smart contracts the backbone of cryptocurrencies

Written by

crypto.icu contributor

in

Cryptocurrency Transactions with Smart Contracts

We know that smart contracts are digital agreements that automatically execute when certain conditions are met.

Similarly, cryptocurrency transactions with smart contracts happen when one person initiates a transfer and another person receives the funds.

But what makes these transactions different from normal cryptocurrency exchanges is that they are programmed to automatically execute when certain conditions are met.

Once these conditions are verified by the blockchain, the transaction goes through and the funds are transferred between the parties.

When someone initiates a cryptocurrency transaction through a smart contract, it’s recorded in the blockchain. The transaction is verified by a majority of the computers in the network, and once it’s confirmed it is added to the public record.

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