Cointelegraph’s Jackson DuMont tackles smart contracts in the latest episode of Cryptopedia. He explains how smart contracts work from the basics and provides examples of how they can be utilized in real-world scenarios. 

DuMont describes smart contracts as code within the blockchain that “execute when specific conditions are met.” They are self-executing contracts built on blockchain technology and have the power to complete transactions without middlemen.

As an example, DuMont explained the difference between transacting in a centralized exchange like Binance and doing the same transactions with a decentralized exchange (DEX) like Uniswap, which is powered by smart contracts.

With Binance, a user has to believe that Binance will complete their transaction, and the execution of the transaction relies on the user’s trust in the third party, which in this case is Binance. On the other hand, DuMont explains that:

“Smart contracts eliminate the need for a middleman because instead of being run on a company server, they’re run on a decentralized blockchain network.”

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This means that the chances of a smart contract being executed are higher, as the network is not controlled by a single company. Instead, a blockchain network is run by various anonymous nodes distributed throughout the world.

“If you want to interact with someone else through a smart contract, you don’t have to know who they are. You don’t even have to trust…