SMART CONTRACTS: UNDERSTANDING THE TECHNOLOGY BEHIND SELF-EXECUTING BLOCKCHAIN AGREEMENTS

Abstract

This comprehensive article explores the technological foundations, implementation frameworks, and future implications of smart contracts in blockchain technology. The article examines the core features of smart contracts, including their automated execution mechanisms, security architectures, and cost efficiency through disintermediation. Through detailed analysis of real-time execution environments and Hyperledger Fabric implementations, the article explores the technical architecture and workflow processes integral to smart contract deployment and operation. The article delves into various implementation domains, particularly focusing on financial technology applications, decentralized finance (DeFi) systems, and supply chain management solutions. The article also addresses critical technical challenges and limitations, presenting mitigation strategies for code-related issues, architectural constraints, and integration challenges. By incorporating insights from multiple industry studies and patent analysis methodologies, this article provides a thorough examination of smart contract technology's current state and its potential impact on digital transaction systems, offering valuable perspectives for both practitioners and researchers in the blockchain domain.