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What is a smart contract?
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So what is a smart contract really?

Well the short answer is that a smart contract is a "program". That program defines rules and agreements to transfer assets or digital currency when some conditions are met. 

The implementation depends on the protocol. In Bitcoin there is something called "Bitcoin Script" and in Ethereum there is something called Solidity. The main difference is that Bitcoin script is NOT "Turing complete" and that Solidity IS Turing complete.

For a language to  be Turning complete it must be able to do whatever you can dream of having a computer do for you (almost). That is not possible with Bitcoin script since "loops" are NOT possible. Loops are possible in Solidity and therefore a program in Solidity can be Turing complete. 

The reason for Bitcoin script NOT to allow loops is that if a malicious destructive script is made that go into an infinite loop then every node in the system will use energy to do nothing. That problem is solved by Ethereum by asking for gas to do anything. So the cost of an infinite loop would be infinite and therefore not possible. 

The is damn smart.
Cardano is the most promising 3 gen. crypto right now.


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