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

Users can trigger the existing code pieces (“smart contracts”) on a blockchain to execute them with the inputs they want.
Every smart contract is associated with an account. Users also have accounts. When a user wants to trigger (“call”) a smart contract, that user creates a transaction to the smart contract account.
For example, someone can trigger the buyBook program by calling its account as follows:
<code class="inline-code">Alice -&gt; buyBook($10)</code>