Nick Szabo coined the term smart contract in 1994. Smart contracts are self-executing contracts. They eliminate intermediaries and allow direct P2P transactions. A smart contract has the power to automatically enforce some obligations. One of the best examples of this is a vending machine: when you need an item from a vending machine, you pay into it and it gives you that item without needing any middleman.
Smart contracts are very different from traditional software programs. Smart contract code is immutable once deployed on the blockchain. Because of this immutable property, we have to think twice before deploying it; otherwise, it could end up with critical flaws in production. A different mindset is required for writing smart contracts. Some smart contracts present in decentralized applications handle the flow of ETH or other ERC20 tokens, which have real...
