ETH (ETHEREUM): Smart Contracts

Smart contracts are those contracts that enforce a relationship with cryptographic code. The idea was initially brought out as a kind of digital  vending machine by Nick Szabo, computer scientist and cryptographer, in 1993. Smart contracts can function as multi-signature accounts, managing agreements between users and ensuring utility to other contracts. It stores the application information. Contracts written in smart contract specific programming languages are compiled into ‘bytecode’, which can be read by ‘Ethereum Virtual Machine (EVM)’. Each time a transaction is initiated; all nodes on the network should fall in line with the agreement. The EVM’s validates and executes a contract with rules that was programmed by the developer.