Smart contracts are programs stored on the Ethereum blockchain that run when predetermined conditions are met. They allow automatic execution of terms without third party involvement. An example is described where a smart contract is used to automate the rental of an apartment, refunding payment if the digital key is not received by the rental date. Smart contracts offer autonomy, security, speed and ensure terms are followed if conditions are satisfied. As smart contracts grow in use, demand is increasing for Ethereum experts and developers trained in their creation through certifications like those offered by Blockchain Council.

1. Copyright © Blockchain Council www.blockchain-council.org 1

2. Copyright © Blockchain Council www.blockchain-council.org
Ethereum Smart Contracts: How Do They Work
Digital currencies are no more an alien concept. There are widespread use and
application of the same. When we talk about digital currencies, then the first thing
that pops up is Bitcoin, but several other currencies surged after Bitcoin and have
a profound impact on the market.
2

3. Copyright © Blockchain Council www.blockchain-council.org
One such currency is Ethereum. One of the notable features of this
cryptocurrencies is that it is also an open-source Blockchain platform. Ethereum is
the second-largest digital currency after Bitcoin. Owing to the multitudinous nature
of Ethereum, there is a higher demand for Ethereum experts. Many individuals are
looking forward to Ethereum certification.
3

4. Copyright © Blockchain Council www.blockchain-council.org
Smart contracts are an integral part of Ethereum; in fact, it is the greatest boon
that has led to the most significant transformation in the industries. In this blog, we
will discuss the functioning of smart contracts and what role it plays in helping the
industries become more efficient.
4

5. Copyright © Blockchain Council www.blockchain-council.org
Smart Contract
In simple words, a smart contract is a pre-programmed contract that runs on the
Ethereum platform. It promotes the exchange of property, shares, money, or
anything of value transparently. Moreover, this is an intermediary free contract
wherein direct transfer takes place between the two interested parties.
One has to learn solidity to prepare the smart contract. These find applications in
real estate, healthcare, finance, etc.
5

6. Copyright © Blockchain Council www.blockchain-council.org
Here we present you a simple example of how does smart contract work:
Let's say that you want to rent an apartment from A. You can do this via
Blockchain, and the payment is made in cryptocurrency. You will get a receipt that
is held in a virtual contract, and A gives you a digital entry key which comes to you
on a specified date. If the key doesn't reach you on time before the rental date,
then the contract releases the refund. If A sends the key before the rental date,
the function holds its release of key and fee until the respective date arises.
6

7. Copyright © Blockchain Council www.blockchain-council.org
In simple words, a smart contract works on the If-Then system. This is an entirely
automated system that works like If a condition is met, then the payment is made.
With this simple concept and without the interference of a third-party, you have a
contract that functions seamlessly.
These features can use smart contracts for all kinds of uses, like paying the
insurance premium, property law, breach contract, financial services,
crowdfunding agreements, and legal process.
7

8. Copyright © Blockchain Council www.blockchain-council.org
What makes smart contracts unique?
Here are the key features of a smart contract that makes it inevitable:
1. It is autonomous
2. Smart contracts work automatically
8

9. Copyright © Blockchain Council www.blockchain-council.org
3. It is a completely safe contract as the information is encrypted
cryptographically
4. This works fast as you don't have to wait for validation. Once the
condition is met, the payment is executed
9

10. Copyright © Blockchain Council www.blockchain-council.org
With all these features, smart contracts have become so popular. Since most of
the companies are now inclining towards smart contracts, there is going to be a
great demand for Ethereum expert and smart contract developers.
10

11. Copyright © Blockchain Council www.blockchain-council.org
Conclusion
Blockchain Council is providing Ethereum certification. As a part of this
certification program, you will learn about smart contract development,
decentralized application, and other uses. You will get to know how to develop a
smart contract and its successful execution.
For more information on Ethereum certification, connect with Blockchain Council
today.
11

12. Copyright © Blockchain Council www.blockchain-council.org
Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
● Certified Blockchain Expert
● Certified Blockchain Developer
● Certified Smart Contract Developer
● Certified Solidity Developer
● Certified Ethereum Developer
12

13. THANK YOU!
Any questions?
You can mail us at
hello@blockchain-council.org
Copyright © Blockchain Council www.blockchain-council.org 13