A smart contract is a self-executing contract with the terms of the agreement directly written into code. These contracts run on blockchain technology, which ensures their immutable and transparent execution. Unlike traditional contracts that rely on intermediaries for enforcement, smart contracts automatically execute and enforce the terms when predefined conditions are met.

Smart contracts enable trustless transactions, meaning parties can interact directly without the need for intermediaries. They are utilized in various decentralized applications (dApps) across industries such as finance, supply chain management, and voting systems.

“I believe smart contracts have the potential to revolutionize how agreements are made and executed, offering greater efficiency, transparency, and security in various sectors.”