As the world warms up to the idea that cryptocurrencies are here to stay, many have started to think more deeply about the advantages these digital currencies offer over traditional money. Transactions are fast, security is guaranteed by design, and third-party verification is instantly and indefinitely possible.

Now that we’ve demystified smart contracts and better understand what they are and how they work, let’s build our own contract on top of the Ethereum blockchain. Because smart contracts are computer programs at their core, many of the concepts that we’ll use to build a basic contract will seem familiar.

Smart contracts are often described as a transformative new technology that borders on magic, able to remove third-parties and monetary risk alike from business deals using the power of the blockchain. The autonomous execution and enforcement of an agreement may sound like something out of a Harry Potter novel, but the maturation of blockchain-based programming techniques have made smart contracts more of a reality than ever.  Many types of business transactions today require intermediate parties to facilitate the exchange of goods or services.