How it's Work.

The Ethereum blockchain is similar to Bitcoin, but its programming language enables developers to write programmable code, called smart contracts . If a traditional contract outlines the terms of a relationship, a smart contract ensures those terms are fulfilled by writing it in code. It is software that automatically executes the agreement as soon as predefined conditions are met, eliminating the delay and expense involved in completing a deal manually. To take a simple example, an Ethereum user could create a smart contract to send a certain amount of ether to a friend on a certain date. They would write this code into the blockchain, and as soon as the contract is complete - that is, the agreed date arrives - the ether would automatically be released to the other party.