A decentralized computer system

Adding code into blocks

Adding code into blocks - Demo

Triggering smart contracts

Triggering smart contracts - Demo

Trigger transactions are added to the next block

Trigger transactions are added to the next block - Demo

Miners execute the code when mining

Miners execute the code when mining - Demo

Virtual machines run the code

What does it cost to run smart contracts? 

Transaction fees - Demo

What happens when the code is executed?

1️⃣ Smart contracts creating a new transaction - Demo

2️⃣ Smart contracts updating the state - Demo

Recap

Big picture: advantages of decentralization

Big picture: what is possible with smart contracts?

Big picture: limitations of smart contracts

1 Section

Transition to Web3 - Course 3 | How Smart Contracts Work

Decentralized computing systems are complex.&nbsp;
But they come with some advantages that existing computing systems don’t have:
<ul><li>No single point of failure. Decentralized systems are more secure because many nodes have a copy of the entire blockchain. There is no single, uniquely vulnerable point. Even if a few nodes are out of game, the remaining nodes can run the entire system.&nbsp;</li><li>Transparency. This one is obvious, right? The system is transparent because literally everything is recorded on a blockchain!</li><li>Immutability. The system is immutable because previous blocks cannot be changed. </li></ul>