Explained in a Story! – Smart Contracts on Blockchain

Hello Fam, how are you doing today. I hope you are having a great time, and your Thursday is cruising like Dolphins in ocean. Welcome back to my series ‘Explained in a Story!’ which discuss interesting ideas in a story, and simple to understand English.

The current focus of the series is on “Blockchain Technology” and we will discuss ‘Smart Contracts’ today. Smart contracts do what agreements does, without the need of a third party. Legal contracts are enforced by the law, smart contracts are enforced by the code itself.

Let’s discuss more in the below short story.

Imagine you’re at a carnival, and you meet a magician named Bob. Bob is no ordinary magician; he’s a tech wizard who specializes in something called smart contracts. Now, smart contracts are like magical agreements written in code on a blockchain. A blockchain is like a chain of digital blocks that store information securely and transparently. Think of it as a public diary that everyone can see, but no one can erase or change what’s written in it.

Bob tells you, “Smart contracts are like vending machines.” You look puzzled, so he explains: “When you put the right amount of money in a vending machine and choose your snack, the machine automatically gives you what you asked for, right? Smart contracts work in a similar way. You fulfill certain conditions, and the contract automatically does what it’s programmed to do, without needing a middleman.”

To make it more fun, Bob decides to show you how a smart contract works using his magical hat. He sets up a game where you have to guess the number he’s thinking of between 1 and 10. If you guess right, his hat (acting like a smart contract) will drop a golden coin. If you guess wrong, nothing happens.

You guess the number 7, and voilà! A golden coin drops out of the hat. “That’s smart contracts for you,” Bob says with a grin. “The conditions were set (guess the right number), and when you met the condition, the contract executed itself and gave you the reward.”

Bob explains further: “In the real world, these contracts can be used for all sorts of things, like selling a house, issuing tickets for an event, or even voting in elections. And because they run on blockchain, they are secure and transparent. No one can tamper with them once they’re created, just like no one can change the rules of our little game after we started.”

As you walk away with your golden coin, you realize how cool and useful smart contracts are. They automate processes, reduce the need for trust, and make transactions faster and more secure.

Bob calls out, “Remember, smart contracts on blockchain are like magic, but real and much more practical!” You laugh and wave goodbye, thinking about how amazing technology can be, especially when explained with a bit of magic and humor.

I hope you liked it. Keep dropping in to learn Blockchain, in an easy and fun way.

Love and Luck

~R