---
title: "Discussion on \"Understanding the Inner Workings of Smart Contracts: A Step-by-Step Explanation\" | Hashnode"
description: "Discussion on \"Understanding the Inner Workings of Smart Contracts: A Step-by-Step Explanation\". A contract is an agreement that exists between two or more people. On the other hand, smart contracts are programs or codes that carry out the terms of an agreement. However, the workings of traditional contracts are prone to error and distrust from ..."
url: "https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013"
---

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# [Understanding the Inner Workings of Smart Contracts: A Step-by-Step Explanation](https://amarachukwu.hashnode.dev/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation?utm_source=hashnode&utm_medium=feed)

A contract is an agreement that exists between two or more people. On the other hand, smart contracts are programs or codes that carry out the terms of an agreement. However, the workings of traditional contracts are prone to error and distrust from ...

Oct 18, 2023 · 6 min read · amarachukwu.hashnode.dev  
Updated Dec 19, 2023  
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-   [#blockchain](https://hashnode.com/tag/blockchain)
-   [#blockchain-technology](https://hashnode.com/tag/blockchain-technology)
-   [#smart-contracts](https://hashnode.com/tag/smart-contracts)

## Written by

[Udeze Amarachukwu](https://hashnode.com/@Amarachukwu23)

@Amarachukwu23

  
[View profile](https://hashnode.com/@Amarachukwu23)

Technical writer, web3 researcher, web3 writer

## Responses 3

Markdown supported · ⌘↵ to post

[Aishat Muhammed](https://hashnode.com/@thisaishah)

[Oct 18, 2023](https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013/comment/653004292401c63aa8e6c4c2)

Thanks for the clear explanation

[Mercy Makinde](https://hashnode.com/@Blockchaingirl)

[Oct 18, 2023](https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013/comment/652fcf1b5c3ae7363aa37b49)

Informative

[Udeze Amarachukwu](https://hashnode.com/@Amarachukwu23)

[Oct 18, 2023](https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013/comment/652fcf1b5c3ae7363aa37b49#reply-652fdfbd007f3a394bb97ab9)

Thank you!

[Adeola Ajiboso](https://hashnode.com/@Adeola-Ajiboso)

[Oct 18, 2023](https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013/comment/652fcdd28cd2f0360a18e3bc)

Nice write up

[Udeze Amarachukwu](https://hashnode.com/@Amarachukwu23)

[Oct 18, 2023](https://hashnode.com/posts/understanding-the-inner-workings-of-smart-contracts-a-step-by-step-explanation/652fc9d21776839a8691f013/comment/652fcdd28cd2f0360a18e3bc#reply-652fdfb4007f3a394bb97ab4)

Thank you