For understanding taking an example of Kickstarter . Kickstarter is company in which product team shared project to supporter team. Sometimes the project gone be pass or fail here how the smart contract is work. The teams making an agreement transact directly with each other. Therefore , we can program smart contract in this way means when the project gets fully funded before deadline,the money automatically goes to product team else project gone be fail than money back to support team member.
By using block chain we can send the money from peer-to-peer across the world similarly just like sending images from one phone to another phone in millisecond . It is smallest procedure in which we have to send the bitcoin address to that person receives money from.
Every block contains thousand of transaction. Due to transparency anybody gone be hack it. For that purpose of securing data ,in block chain use SHA-256.
A block-chain is a linked list which contain data and hash pointer. The hash Pointer point to previous block. The hash pointer contains hash of data previous inside block.
If hacker attack any block and modified the data.Because the properties of hash function slightly changes in data will change the hash immediately and all the next block gone be affected .This will completely change the blockchain, which is impossible. That’s why blockchain attain Immutability.
Punctual means everything be on time.
Smart Contract is restructive. If you cannot do anything on time according to contract term strictly action gone takes against you.
Smart contract is legal proof for evidence.
It eliminate third party intermediaries and overhead cost for exchanging money .e . g. request for bill of credit ,letter of credit issuance , receiving document to delivery , payment to supplier.
