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I am quite new to ethereum and its blockchain but I do know what bitcoin is and what is the bitcoin blockchain. One of the still mysterious concepts around the blockchain is the integration of smart contracts. what are these exactly and how do they work on top of the ethereum blockchain.

Note : I read the blog post of Vitalik about the smart contracts and DAOs, DACs, ... yet the idea of the Judge J who will be sort of a broker between the two contract parties was not really clear which made me post this question.

Any ideas ?

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The contract is the judge in your example, both parties enter into the contract knowing full well what it contains. There is no other need for a 3rd party such as a judge.

If you don't understand the smart contract your engaging with then do not engage.

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