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Smart Contract

A smart contract is a type of contract that executes automatically when certain predefined circumstances are met. It is typically found on a blockchain and used to manage blockchain-based digital assets. Smart contracts can facilitate various electronic transactions, including the purchase of cryptocurrencies.

What Small and Midsize Businesses Need to Know About Smart Contract

With usage expanding beyond cryptocurrency, smart contracts are now even used by SMBs. For instance, SMBs can use smart contracts to automatically deduct money from bank accounts when certain circumstances are met. This cuts the need for a broker or other third party. Since these contracts are self-enforcing by a neutral arbiter (the blockchain), they have many other extensive applications for SMBs.

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