What does Ethereum contract mean?

An Ethereum contract is an autonomous software program stored on the blockchain that automatically executes predefined rules. Its working principle includes creation, deployment, calling, execution and storage. Features include immutability, autonomy, transparency, security, and decentralization. Applications include decentralized finance, NFTs, and supply chain management.

What is an Ethereum contract?

Ethereum contracts are software programs stored on the Ethereum blockchain. They are autonomous, meaning they execute automatically according to defined rules or actions without external intervention.

How Ethereum contracts work:

• Creation: Users create contracts and deploy code and data to the blockchain.
• Deployment: The contract gets a unique address that users can use to interact with the contract.
• Call: The user calls a function by sending a transaction to the contract.
• Execution: The contract performs the requested operation according to its code.
• Storage: The contract stores data and permanently saves it on the blockchain.

Features of Ethereum contracts:

• Immutability: After a contract is deployed, its code or data cannot be changed.
• Autonomy: The contract automatically executes its predefined rules without human intervention.
• Transparency: Contract code and data are publicly visible on the blockchain for anyone to view.
• Security: Contract execution and data storage are protected by network consensus.
• Distributed: The contract is replicated to all participating nodes, making it resistant to censorship and failure.

Applications of Ethereum contracts:

Ethereum contracts are widely used in the following fields:

• Decentralized Finance (DeFi)
• Non-Fungible Tokens (NFT)
• Supply Chain Management
• Voting System
• Identity Verification

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