Smart Contract Fundamentals

In this chapter, we will explore the basics of smart contracts. While in Bitcoin we store value, in Ethereum we store code. The code that we store in Ethereum is called a smart contract. A smart contract is a trustless code, meaning the integrity of the code is guarded by algorithms and cryptography. We can store, the code which is censorship-resistant and is able to avoid third-party interference even from the developer of the smart contract. This opens possibilities of creating many types of application, such as transparent digital tokens, trustless crowdsale, secure voting systems, and autonomous organization.

The following topics will be covered in this chapter:

• Installing an Ethereum development environment
• Writing a smart contract
• Deploying a smart contract to Ethereum blockchain
• Interacting with smart contracts
• Why smart contracts?