Predefined Business Logic in Blockchain: Understanding How It Works

Blockchain technology is revolutionizing many industries by providing decentralized, immutable, and transparent databases that can be used for various purposes. One of the key features of blockchain is the ability to execute predefined business logic. This means that instructions can be automatically executed without human intervention once certain conditions are met. In this article, we’ll explore predefined business logic and how it works in a blockchain system.

What is Predefined Business Logic?

Predefined business logic, also known as smart contracts, is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. Smart contracts allow for automating transactions and agreements between parties without intermediaries. They are computer programs that automatically execute the terms of a contract when certain conditions are met. For example, a smart contract can be programmed to release payment to a seller once the buyer confirms the receipt of goods.