Skip to main content

What are Smart Contracts?

A smart contract is a self-executing contract with the terms of the agreement directly written into code. These contracts run on the Ethereum protocol and are programmed in a language called Solidity.

Imagine a smart contract as a robot inside your computer that follows instructions you give it. Just like a vending machine, you put something in (like cryptocurrency), and if you meet the right conditions (like picking a snack), the machine automatically gives you what you want. These "robot contracts" live on the internet, follow the rules perfectly, and can't be changed once they start running.

Here are some key points about smart contracts that you should know:​

  • Automated Execution: Smart contracts automatically perform transactions and operations when their conditions are met, eliminating the need for intermediaries.

  • Stored on Blockchain: Smart contracts are stored and executed on the blockchain, providing transparency and immutability.

  • Handle Tokens: They can receive, store, and send tokens (like funds).

  • Immutability: Once deployed, smart contracts are immutable, meaning they cannot be altered. Now, why are smart contracts so popular in web3? Smart contracts enable decentralized applications, or DApps, to function, allowing for complex, trustless interactions to happen on the blockchain. They are a core component of many projects because they provide a high level of security, transparency, and efficiency.

As for Media Network, it leverages Media Protocol smart contracts to manage interactions between providers and clients in a secure and transparent manner. The terms of agreements are encoded in these contracts and cannot be altered, ensuring they are respected by all parties. This eliminates intermediaries, making the marketplace more cost-effective, efficient, and flexible.