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 on the blockchain.
Smart contracts allow for the automation of contract execution and enforceability, as the terms of the contract are enforced by the code. This can help to reduce the risk of fraud or misunderstanding, as the terms of the contract are clear and transparent.
Smart contracts can be used in a variety of applications, including the buying and selling of real estate, the lending and borrowing of money, and the exchange of goods and services. They can also be used to facilitate complex financial transactions and to automate supply chain management.
Overall, smart contracts have the potential to streamline and automate many types of legal and financial agreements, making them faster, more secure, and more efficient.