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Smart contracts (also called distributed apps) are very popular nowadays. But what are they and what problems do they solve? The term smart contract was first used by Nick Szabo in 1997, long before Bitcoin was created. He is a computer scientist, law scholar and cryptographer so Ill spare you his exact words. But in simple terms: he wanted to use a distributed ledger to store contracts. Now, smart contracts are just like contracts in the real world. The only difference is that they are completely digital. In fact a smart contract is actually a tiny computer program that is stored inside a blockchain. Lets take a look at an example to understand how smart contracts work. You probably are familiar with Kickstarter, the large fundraising platform. Product teams can go to Kickstarter, create a project, set a funding goal and start collecting money from others who believe in the idea. Kickstarter is essentially a third party that sits between product teams and supporters. This means t