Smart contractSmart contracts are computer programs that facilitate self-execution and self-enforcement of digital contracts and agreements without third-party intermediaries (such as... Read More execution refers to the process of executing a smart contract on a blockchainAs a distributed ledger technology (DLT), a blockchain is a digital ledger that can create an immutable record of transactions.... Read More. When a smart contract executes, it runs through the code stored on the blockchain to determine what actions to take. Smart contract actions can involve sending or receiving payments, or transferring ownershipEvery transaction and block on a blockchain has an owner. An owner is any entity (person, group, or organization) with... Read More of assets, for example. For a smart contract to execute, it requires a trigger. Typically, this involves someone sending a transactionA transaction is a record of an event that occurred in the past. Transactions typically occur during the course of... Read More to the smart contract’s address. However, smart contract’s can auto-execute on other criteria as well. Time-based triggers (i.e., on a specific date) or data parameters such as the number of days without rain (i.e., a farmer’s insurance policy) are just a few examples.
