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Further reading What is a smart contract? A "smart contract" is simply a program that runs on the Ethereum blockchain. It's a collection of code its functions and data its state that resides at a specific address on the Ethereum blockchain.

Smart contracts are a type of Ethereum account. This means they have a balance and they can send transactions over the network. However they're not controlled by a user, instead they are deployed to the network and run as programmed.

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User accounts can then interact with a smart contract by submitting transactions that execute a function defined on the smart contract. Smart contracts can define rules, like a regular contract, and automatically enforce them via the code.

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Smart contracts cannot be deleted by default, and interactions with them are irreversible. Prerequisites Make sure you've read up on accountstransactions and the Ethereum virtual machine before jumping into the world of smart contracts.

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A digital vending machine Perhaps the best metaphor for a smart contract is a cryptocurrency types machine, as described by Nick Szabo. With the right inputs, a certain output is guaranteed.

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A smart contract, like a vending machine, has logic programmed cryptocurrency types it. Here's a simple example of how this vending machine might look like as a smart contract: 1pragma solidity 0.

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