Bitcoin Smart Contracts Explained: How They Work
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A Bitcoin smart contracts transaction isn't just a simple transfer. It carries a tiny program attached to it, one that decides exactly who can spend the coins and under what conditions. That program is the foundation of Bitcoin smart contracts: spending rules written directly into how the network checks and settles every transaction. They're nowhere near as flexible as what Ethereum runs, but they've quietly powered things like multisig wallets and payment channels for years. Every output in a Bitcoin transaction comes locked behind a condition, something that has to be satisfied before those coins can ever move again. To spend it, someone has to supply an unlocking script, usually just a digital signature, proving they actually hold the right key.
First reported by CoinGabbar. This page is a short excerpt; the full text is theirs.
