From the course: What Is Web3?

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What is a smart contract?

What is a smart contract? - Blockchain Tutorial

From the course: What Is Web3?

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What is a smart contract?

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- [Narrator] Smart contracts have become a central feature in the vision of Web 3. Whereas a crypto coin or token is a passive asset, a smart contract added to the token makes it an active agent on the blockchain. A smart contract is a self-executing function embedded in a token that performs actions on the blockchain based on other transactions and events taking place on the blockchain. Here's a basic example. Our food truck festival sells NFTs giving holders access to VIP cooking classes. But since an attendee is likely to want to attend a cooking class only once, there's a high chance that attendee will sell the NFT or trade it with someone else after using it. To ensure this doesn't become a situation where one NFT is used by a long list of people without the festival earning any profits, the NFT contains a smart contract that sends 15% of the purchase price of the NFT back to the festival anytime the NFT is traded.…

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