Emerald Blockchain Course: 7. What Are Smart Contracts?

And how they power immutable dapps.

Image of Donald McIntyre

By Donald McIntyre

July 25th, 2022

post image

Emerald Blockchain Course class 7 about smart contracts.

You can watch this class here:

In the following sections we will explain what are smart contracts, the difference between apps and dapps, and why dapps are more secure.

1. Apps are software programmes.

When we use apps in our computers or phones, those are software programmes.

Apps are software.

2. Apps and online services are centralized.

When we interact with websites from tech companies and banks, those are centralized and controlled by them.

Online services are centralized.

This means that they run on private servers or cloud services and they can be shut down, hacked, censored, changed, or easily prohibited by governments.

3. Smart contracts are also software programmes.

Smart contracts are also software programmes, but when developers send them to the blockchain they become decentralized.

Smart contracts are software.

This is because, like blockchain transactions and blocks, the code of smart contracts is replicated in all the machines, which may be thousands, in the network globally.

4. Decentralized applications are "dapps".

Because smart contracts power decentralized applications, we call them “dapps”.

The term "apps" is short for "applications". So, "dapps" is short for "decentralized applications".

5. Examples of dapps.

They can be decentralized exchanges, NFT’s, Stablecoins, or any kind of dapp.


In our next class we will explain dapps in more detail.

6. Smart contracts powered dapps gain the security of blockchains.

Because they are inside a blockchain they are permissionless, uncensorable, and immutable.

Permissionless: Means that as long as they are compliant with protocol rules, anyone from any place in the world can create accounts, enter transactions and smart contracts, or participate in the network as a competent developer, miner, validator, node operator, user, or any other prescribed participant or stakeholder.

Uncensorable: Means that as long as they are compliant with protocol rules, transactions or smart contracts cannot be prevented from being entered, processed and finalized.

Immutable: Means that accounts, balances and smart contracts cannot be modified except by holders of corresponding private keys by entering transactions according to protocol rules.

7. Emerald supports Ethereum and Ethereum Classic.

For now we support Ethereum and Ethereum Classic, but in the near future we will be adding more smart contracts blockchains.

ETH and ETC.

Thank you for following this class!

Please download and start using Emerald here: