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whats up everyone welcome to rare liquid and in todays video im gonna explain what a smart contract is and what its benefits are in less than three minutes jumping straight into it smart contracts actually date all the way back to the 1990s when they were first introduced by an early cryptographer named nick zabo he described vending machines as primitive ancestors of smart contracts since they take payment and dispense products ing to a displayed price without the need for a middleman in a similar sense smart contracts in crypto receive payments from users through whats known as gas fees and transactions are self-executed through computer code once predetermined criteria are met lets now run through an example that demonstrates how a smart contract built on a blockchain can help benefit multiple parties by removing the middleman for companies like uber you request a ride and when the driver picks you up and drops you off the transaction is complete you pay your fee and uber takes