What are blockchain technology and smart contracts?

Blockchain technology is a form of digital ledger technology that uses cryptography to secure the storage and transfer of digital assets, such as cryptocurrencies. It is a distributed and decentralized digital ledger that records transactions across multiple computers so that any involved record cannot be altered retroactively without the alteration of all subsequent blocks.

Smart contracts are digital contracts that are stored on blockchain ledgers. They are self-executing digital agreements that use code to automatically execute certain actions based on predetermined conditions being met. These contracts can be used to facilitate secure and transparent transactions and agreements between two or more parties without the need for a third party. Smart contracts are self-verifying and completely transparent, meaning that the involved parties can keep track of the contract’s progress and ensure that all parties abide by the agreement.