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Smart contracts

By CoinGecko | Updated on Mar 03, 2020
Smart contracts are a relatively new concept due to the impossibilty of a decentralized and unsupervised self executing contract prior to the creation of public blockchains. Unlike traditional contracts that relies on its participant's good faith to act on or enforced by a witness or notary, Smart contracts will execute its predetermined function as soon as its contract conditions are met. Just as cryptocurrencies made counterparty risk obsolete, smart contract removes the risk of contract defaults because it will execute autonomously and transparently.

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Related Terms

Gas Price
A term refers to the amount of price user is willing to pay for a transaction on Ethereum blockchain.
STO
Security Token Offering (STO) refers to a public offering for tokenized digital securities, or in short security tokens traded in cryptocurrency exchanges.
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Blockchain
In Bitcoin's case, blockchain describes its decentralized, public ledger which contains transactional information.
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