Smart Contracts

What are Smart Contracts on the Blockchain? Smart contracts are self-executing agreements consisting of the conditions of an arrangement amongst peers. The smart contract performs on the Ethereum blockchain's decentralized system. The contracts help with the exchange of cash, shares, residential property, or any type of asset. Watch our smart contracts video tutorial to find out what smart contracts are on the Ethereum network and how smart contracts work to perform complex sets of rules. Learn more about DeFi Yield Farming here or go to our main website BEES.Social

Why Does a Blockchain Need a Smart Contract?

Why does the blockchain need a smart contract? A blockchain need a smart contract, because people are not satisfied with just writing to the blockchain.

Blockchains and smart contracts work together, because there is a need for more sophisticated things to occur on these blockchains. As we're talking about and the Ethereum blockchain, there are rules that need to be executed, there are programs that need to be run, there are loans that need to be made, there are investments that need to be made.

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Watch the entire video series guide about smart contracts on the blockchain here

There are investments that need to be pulled back, these smart contracts, run all of these things on the blockchain.

And it's far more important to have a set of rules that can go and do things for you, then have everyone manually going and doing things on the blockchain, because ultimately, it wouldn't scale and wouldn't allow people to run.

Now, given that you have things like the Ethereum blockchain, which runs only 15 transactions per second, or the the Bitcoin blockchain which runs even fewer, they are slower running than most things.

The is that every blockchain has different rules about how its smart contracts work, the Ethereum blockchain, when its smart contracts work, those smart contracts actually need Ethereum to run. So when those rules run, there is a gas fee to have those smartt contract rules run.

So when you go and try to execute a transaction, when you're requested a gas fee, it is to keep that network running. And the Ethereum network consumes those gas fees and Ethereum fractions of Ethereum, And those gas fees go to the miners as a reward for writing one more element.

One more thing in the ledger in that block to reflect the transaction that was made. And so that's why smart contracts are needed on the blockchain.

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Part 1 - What is DeFi? - Decentralized Finance on the Blockchain

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Part 3 - What is Yield Farming? How do Yield Farmers Make Money?

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