SmartContract explanation

Initially, blockchain gained popularity through Bitcoin. Bitcoin is a currency that allows for transactions in the payment sense, but nothing more.

Later, blockchains with additional capabilities emerged: the ability to execute Smart Contracts.

Imagine a world where contracts are automatically executed. You need to be paid in 30 days, and software on the blockchain automatically makes the payment when due. You have taken out an insurance contract, and automatically, without the intervention of a third party (the insurer), if an insured event occurs (you visit your doctor), you are compensated by the automatic execution of software that no one can stop.

Smart contracts also enable the automatic execution of complex transactions in a transparent and secure manner. They are now used in a variety of web3 applications: games, finance, metaverse experiences, real estate investment.

It was Ethereum that first proposed this possibility and became the second-largest blockchain as a result. It was followed by other blockchains using similar technologies (EVM) or different ones like Solana.

Some projects have also added the ability to execute smart contracts on Bitcoin. However, these are overlays that use the Bitcoin blockchain, and this capability is not directly integrated into the Bitcoin protocol.

This limitation of Bitcoin is also an advantage that makes it unique.

Sophie.fi also uses smart contracts on Polygon.