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Bitcoin Smart Contracts Explained: How They Actually Work

While Bitcoin is primarily known as a digital currency, recent innovations are enabling limited smart contract functionality within its ecosystem.

Bitcoin’s scripting language allows developers to create programmable transactions that operate similarly to smart contracts. Though not as flexible as Ethereum’s contracts, Bitcoin’s system focuses on security and simplicity.

With innovations like the Lightning Network and layer-2 solutions, Bitcoin is gradually expanding its capabilities beyond basic peer-to-peer transactions.

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