Smart contracts defined
Smart contracts are self-executing digital contracts that enable the automation of the execution and enforcement of a contract's terms and conditions without the need for intermediaries such as lawyers, banks, or other third parties.
Smart contracts are typically implemented using blockchain technology and can be used to automate a wide range of tasks, from simple payment transactions to more complex financial instruments.
The core idea behind smart contracts is to create a digital agreement that is self-executing and tamper-proof, meaning that once the terms and conditions of the contract are encoded into the blockchain, they cannot be altered or manipulated by any party. Smart contracts can also be designed to automatically trigger specific actions based on predetermined conditions, such as the transfer of funds when certain conditions are met.
Smart contracts have the potential to revolutionize many industries by providing a secure, transparent, and cost-effective way to automate and enforce contractual obligations. They have already been used in a variety of applications, including supply chain management, digital identity verification, real estate transactions, and more.