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

But, wait! How can the miners run the code?
Actually, virtual machines run the code. All nodes install a virtual machine that helps them run smart contracts. Think of the virtual machine as a distributed computer that everyone has access to—its role is to run the code.
💅 Fun fact: These virtual machines are called different names by different blockchains. For example, Ethereum network calls them “Ethereum Virtual Machines” (EVMs) while Solana calls them "Expected Execution Environments" (EEEs).