What are smart contracts and how do they work ?
Smart contracts are self-executing contracts that are written in code and stored on a blockchain.
They are designed to facilitate, verify, and enforce the performance of a contract between two or more parties without the need for a third-party intermediary. Smart contracts are programmed to execute certain actions when certain conditions are met. For example, if two parties agree to an exchange of goods or services, they can create a smart contract that will automatically transfer the agreed-upon amount of cryptocurrency from one party to the other when the goods or services have been delivered.
This eliminates the need for a third-party intermediary such as a bank or lawyer to ensure that both parties fulfill their obligations. Smart contracts also allow for automated payments and other functions such as automated escrow services, voting systems, and even crowdfunding platforms. The Rocket Pool project uses smart contracts to enable users to pool their resources together in order to stake Ethereum tokens on Ethereum 2.
0. This allows users to earn rewards from staking while reducing their risk by pooling their resources together with other users.
