What is Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into code. It operates on blockchain technology, which is a decentralized and distributed ledger that ensures transparency and immutability. Smart contracts automatically execute and enforce the terms of an agreement when predefined conditions are met, without the need for intermediaries like banks or legal systems.
Key features of smart contracts include:

1. Autonomy: Smart contracts operate automatically, eliminating the need for intermediaries to oversee or enforce the contract.
2. Trust: The decentralized nature of blockchain ensures transparency and immutability, which enhances trust among parties involved.
3. Security: Smart contracts use cryptographic techniques to secure transactions, making them resistant to fraud and hacking.
4. Efficiency: Automation reduces the time and costs associated with traditional contract execution, as smart contracts execute automatically when conditions are met.

Smart contracts find applications in various fields, including finance, supply chain management, real estate, and more. Ethereum is one of the most well-known blockchain platforms that supports smart contracts, but other platforms, such as Binance Smart Chain, Cardano, and Solana, also offer smart contract functionality.