CODE IS LAW? Smart Contracts Explained (Ethereum, DeFi)

Have you ever heard the expression "code is law" where technology is used to enforce rules? In that case, do we even need lawyers? Or maybe we can live in a fully automated world where code dictates what we can and cannot do. With the current development of smart contracts, this futuristic scenario may be closer than we think.

A smart contract is a piece of code that can be executed automatically and in a deterministic way. The smart contract code is usually stored and executed on the blockchain to make it trustless and secure. Smart contracts also have capabilities of receiving, storing and sending funds and even calling other smart contracts. They follow if-then semantics which makes them fairly easy to program.

Smart contracts aim at removing the human factor from decision making. The human factor is often proven to be the most error-prone and unreliable element of the standard, traditional contracts.

Ethereum is a good example of a blockchain that supports smart contracts and make it possible for a programmer to implement their own smart contracts. A smart contract can be written in a programming language called Solidity which was created specifically for that purpose. In Ethereum, all the deployed smart contracts are immutable. This means that once deployed they cannot be modified which creates certain risks that we’re going to discuss later. Smart contracts on Ethereum are also decentralized which means there is no single machine controlling the contract. In fact, all the nodes of the Ethereum network store the same contract with exactly the same state.

[Finematics]

❓Do you have any questions about smart contracts?
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[stevenlivasy]

i have spent so much time trying to understand this at a simplistic level and I always run into overly complicated videos. you just changed the game for me thank you!

[StunningStinger]

Tells us to asks questions and doesn't answer a single one. Only replies to compliments of video editing. Thanks! Great video!

[thatarcanepoet]

To be sincere, this is the most over simplified video I've seen on smart contracts. I've just subscribed to this channel. Loved the video so much

[MatiJumps]

I am not a native speaker, but I could understand everything clearly! Give you a clap!

[awrjkf]

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[MPorrrrr]

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[fireice]

Thank you so much for putting in the time and effort in explaining this concept so easily. The is the best video on YT which I have come across thus far.

[MrTheelicitor]

The well and thought out implementation of smart contracts across the world will be a win win for all and will make society and the world a fairer place.

[AJ-hgki]

This is great - learned about you from Ivan on Tech & you do an excellent job of explaining this stuff!! Thanx

[cryptoholic]

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[Tblaq]

Putting notifications on... I love this illustrations💯

[wongleo]

Clear explanation with specific examples. Very useful.

[itsalovething]

1:30 programmers see a vending machine, producers see an mpc.

[pauloketch]

Great informative video. when DEFi hits mainstream il be glad i already have the knowledge years before.

[ryzelight]

Love the visual style of this kinda teaching, Really find it easier to follow along :)

[Panther-]

HONESTLY BEST VIDEO FOR EXPLAINING SMART CONTRACTS I HAVE COME ACROSS ON THE NET

[bernardoaltamirano]

Great video!!!The clarity and detail are appreciated.

[ThePixelPizza]

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