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Blockchain Minute- What Are Smart Contracts?

By July 29, 2025Blockchain, Crypto

Blockchain Minute- What Are Smart Contracts?

What Is a Smart Contract? (And Why You’ve Probably Used One Already)

🎙️  Today we’re tackling a foundational concept in blockchain: the smart contract.

You’ve probably heard the term tossed around in Web3 conversations.
But what exactly is a smart contract—and why does it matter?

Smart Contracts: No Lawyers, No Middlemen, No Delay

A smart contract is a self-executing agreement written in code and deployed on a blockchain.

It doesn’t need:

  • A lawyer

  • A middleman

  • An approval process

  • Or even someone you trust

Once the conditions are met, the contract executes automatically. No phone calls. No emails. No arguments.

That’s why you’ll also hear blockchain people talk about “permissionless” and “trustless” systems—because smart contracts don’t need either.

Real-Life Examples You Already Know

You may be thinking:

“That sounds futuristic. I’ve never used anything like that.”

Actually—you probably have.

Here are three everyday examples of “smart contract-like” systems:

1. The Parking Meter

  • You park your car

  • You pay with coins, a card, or an app

  • You instantly get time on the meter

No human being. No trust required.

Just an automatic exchange.

2. The Coke Machine

  • Insert $1

  • Receive a cold soda

  • If the machine works, it always works the same way

It’s a simple contract, executed by a machine.

3. The ATM

  • Insert your debit card

  • Enter your PIN

  • Receive your cash

That’s a smart contract, just with older technology. There’s no teller. No manual approval. Just a programmed system fulfilling a condition.

What Blockchain Does Differently

Smart contracts on blockchain take this automation to the next level:

  • Buy and sell crypto assets

  • Trade NFTs

  • Trigger royalties, subscriptions, payments, and more

  • Even govern decentralized apps (dApps) and entire DAOs

All without a single person pushing a button.

And because it’s all recorded on the blockchain, it’s:

✅ Transparent

✅ Trackable

✅ Tamper-proof

✅ Open-source

Why This Matters for Business and Consumers

Smart contracts reduce:

  • Costs (no need for banks, brokers, or processors)

  • Errors (no human mistakes)

  • Delays (instant execution)

They increase:

  • Efficiency

  • Trust in the code

  • Access for anyone, anywhere

 

In short: smart contracts make doing business cheaper, faster, and fairer for everyone involved.

So the next time someone says “smart contract,” just think:

It’s like a Coke machine… but for the digital economy.

More Blockchain Minute Videos!

 

Blockchain for SchmucksBlockchain for Schmucks

Don’t Be A Schmuck! Imagine its 1993, and some Putz tells you that we will be using our computers and telephones to watch TV, buy stocks, purchase groceries, read the newspaper, pay our bills, and run our businesses. This will happen because of a new protocol called: “The Internet.” You would say “gay chacham, ye linger” (go away, you liar)!

But here we are now, looking at this Fakakta new technology called “Blockchain” which offers as much promise as the Internet did in 1993. This isn’t Chazerei (junk) but real technology that is being used every day. You’re using it yourself but don’t know it!

This Booklela will keep you from being a Schmuck while you learn about Blockchain, Crypto, NFTs, DeFi and Tokenization, all while you join in the laughter.

Enjoy the book and the Schtumi (ongoing humor). And…..don’t have a kniption (anxious fit)! There’s a glossary in the back for tech & Yiddish. GET THE BOOK!

 

 

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