 Okay guys, I'm gonna be talking about smart contract but I do want to first state a disclaimer. Disclaimer number one, I'm not a coder developer, okay? So I'm not talking about the logics over here, I'm not talking about programming language, such as Solidity. And disclaimer two, this is a non-technical video. So I'm trying to distill and synthesize all this technicality into simple language that everybody can understand. So without further ado, now that disclaimer is out there, I shall begin. So the million dollar question, what is a smart contract? Well, a smart contract, first of all, should not be called a smart contract. I think at least right now in this current state, it should just be called a contract. See, a smart contract is nothing more than certain computer code built within to the blockchain cryptocurrency network that computers or the nodes execute and that once the computers and the nodes execute this contract, they update the ledger. So if you guys are familiar, I love working on analogies or contracts where you can actually build your knowledge based on some pre-existing notion such as a schema. So for example, when we talk about smart contracts, let's first relate to something that you might be well aware of already. So in marketing terms, we use something called automation where certain tasks are executed once something is reached or once something is triggered. So for example, in email marketing, when somebody goes through your funnel, certain laws exist where if a person enters their email, they receive email one. If they open up email one, they receive email two. If they open up email two, they receive email three. So what this refers to is IFTT. If this, then that logic. So that's what smart contract is in a nutshell. It's if this, then that logic. So if we created this code online on the blockchain and the law states that if a person puts in money into this contract, then that will execute a next action. That next action will then send maybe a digital contract to somebody's email. And that person will get this contract, maybe sign off and then that trigger will go back to the smart contract code on the blockchain then execute something else. So in a nutshell, it's a domino series where you need a pre-existing event to trigger the next event. The best example when it comes to real life is a vending machine. I put in a dollar, that is the first trigger. That triggers the option for me to type in a code. I type in B six. That trigger me typing in B six executes a bag of chips falling from the vending machine. So that's what a smart contract that is in a nutshell. It's if this, then that logic programmed onto the blockchain and run by all the computers and nodes on that system which automatically then updates the transparent ledger that everybody can see. I hope you understood that. If I got anything mistaken, please comment below. So let's kind of continue beyond that because what's the big deal? So what? It's a pre-written code on the blockchain that can execute a bunch of different actions such as keeping money on an escrow or executing a contract to buy something. So I'm gonna give you examples of why this might be really amazing when it comes to real life examples. And let's talk about two examples that probably everybody has gone through or three examples that everybody has gone through in one form or the other. One, number one is buying a car. Number two is buying a house. Number three is say renting a condo or renting a house. Number one, you wanna buy a car. How does that work? Well, either you go online, you find a car, you go to the dealership and you guys are gonna hang out for the price, you get a price, you gotta go to a bank and the bank's gonna draft you maybe a guaranteed check. You take that guaranteed check back to the dealership. They have to clear that check, the check is cleared. You gotta sign a bunch of paperwork, the ownership, the title for the car ownership and finally you get the car. So the process takes a while, maybe it takes a couple of days to execute. Now imagine if you had that on a smart contract where the actual car itself, let's say a brand new Tesla was uploaded to the blockchain. So the ownership of the car or the details of the car, how much the car costs and the asking offer for the car is on the blockchain. And then you come around even online and by the way, they do sell Teslas online. So that's gonna be something big in the future where you can actually buy cars online. So you go online, you see this Tesla and you're like, wow, this is amazing. All the details are there, it's on the blockchain. So you know the information is correct and they're offering let's say $40,000 for the car. So the traditional way, as I just mentioned is going to the bank, going through this process, signing paperwork, going back and forth and taking a while. However, what you can do is since it's on the blockchain, they have a smart contract in place where you can actually execute or order in real time. So they're offering $40,000. What you're gonna do is you can buy it then and there. You can pay by crypto and it's gonna be flawless. You won't have to like, you don't need to even have crypto. They're gonna have a come to a point where you're gonna have your fiat bank account, a taxa token, that token represents the crypto. So it's gonna be done in real time and then you can buy that car right away. The ownership, the information, everything about it is executed on that smart contract. You now hold the information or you now hold the ownership of that car as your digital identity on the blockchain ledger. Now every single node, every single computer, part of that blockchain ecosystem automatically updates the ledger so everybody now knows on that network that that car was just sold to you so everything is updated. So that's one really cool thing. So imagine like the whole car industry how that's gonna be revolutionized. So number two, say buying a house or buying a condo. The old way is, you know, you go there, you put a bid, you gotta put a deposit down, then you get the ownership paper, then you gotta go check if the ownership is legit. You gotta go a lawyer and pay the lawyer to sign off to make sure there's no liens against the house and make sure that this is the actual authentic ownership paper of the house and you gotta go back, then you gotta go bang, then try to go get a mortgage. So the whole process is very long, very convoluted. Now imagine instead of that, same thing like the car where the house originally was uploaded to the blockchain with the ownership confirmed, making sure there's no liens against the house, full transparency, once you accept it, how much of the mortgage is left, everything, every single process that we need to go through today to buy a house is already on the blockchain. Then I come around, I wanna buy the house for a million dollars. I put my 5% deposit vis-a-vis token or crypto online, automatically the smart contract executes that, opens up now the information for me to see the whole history of the house. It double checks everything. I don't need to go to a lawyer. I don't need no third party verification. It's verified already on there. Then I can actually make my purchase in real time. Now what's cool about this, if we're thinking more out there in the future, is imagine now if 10 of us wanna buy a piece of property. So now we can actually do like multi-equity buys within a house on a smart contract that executes everything towards us. And this has exponential effect. One of the other amazing cool things about smart contract is multi-purpose buying, a multi-signature buying, where even if I wanna sell something, I can sell one third of something, but for us to sell the whole piece of the pie or this property, all three of us who are legal owners have to sign off of it automatically on a smart contract. And so finally, number three, the rent. So whether you are a tenant or a landlord, there's always problems on both ends. Doesn't matter what party you're talking to. Now imagine if you're a landlord. You have a lot of, and I've gone through this process myself, you have a lot of issues with collecting money from some people. It's just a fact of reality. And vice versa. Sometimes as a tenant, your landlord is garbage. Treats you like shit. He's a landlord slum and the place is horrible. So there's issues on both ends. But imagine you are a landlord, and as opposed to trying to collect, say a check every month or even cash every month or maybe have it on the visa, et cetera. Imagine having your contract, your actual monthly rental contract, on a smart contract where it automatically takes a token or crypto off of that tenant of yours into your own digital wallet. And what's cool about this is as a tenant that pays on time with the smart contract, especially on the blockchain, you can actually create something called digital identity with social credibility. So the more that that individual is trustworthy, paying on time, being a good tenant, their social credit rises. And if their social credit is good, that is a lot of leverage. That individual can get better credit or get better loans. That individual might even get a reduced cost when it comes to rent because he has never faulted or she has never faulted on any rent for the last two, three years. So there's a lot of possibilities when it comes to the smart contracts that way. So to kind of summarize in a nutshell, a smart contract is just an agreement between a couple of multi-parties online that can be automatically executed on a transparent blockchain using whether tokens or cryptocurrencies and you can actually involve multi-parties all at one time. So just imagine any type of contract you've done in your life, physically offline and just picture that now uploaded and implemented on the blockchain. So that's it. That's pretty much a smart contract in a nutshell. And like I said before, I was just trying to condense the technicalities or the big high-level thinkings into a small concept over here. I know I probably butchered some ideas over here, but remember, I'm trying to make this simple. If you did notice anything that didn't make sense to you, leave a comment below this video. And like always guys, if you want me to make more videos, leave a comment on suggestions for the next videos and have a great day. Peace.