A smart contract is a computer program that automatically executes the terms of an agreement between two or more parties.
It operates on the blockchain, a decentralized ledger that records transactions and information in a secure, transparent, and tamper-proof manner.
Smart contracts eliminate the need for intermediaries, such as banks or lawyers, to enforce an agreement. They are self-executing, meaning that they automatically enforce the terms of the agreement once the specified conditions are met. The terms of the contract are encoded into the code, and the agreement is enforced by the blockchain network.
Smart contracts can be used in a variety of applications, such as financial transactions, supply chain management, voting, and property transactions. They are designed to be secure, transparent, and efficient, reducing the risk of fraud and the costs associated with intermediaries.