A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein are stored and replicated on a blockchain network.
Smart contracts allow for the automation of contract execution and enforcements, removing the need for intermediaries and increasing the speed and efficiency of executing agreements. They can be used to facilitate, verify, and enforce the negotiation or performance of a contract.
Smart contracts are often associated with blockchain technology, but they can also be implemented on other types of distributed ledger systems. They are designed to be transparent, secure, and immutable, which makes them well-suited for use in a wide range of applications, including financial transactions, supply chain management, and the automation of legal agreements.
Overall, smart contracts are a powerful tool for automating and streamlining the execution of complex agreements, and they have the potential to revolutionize the way that contracts are created and enforced in a wide range of industries.