What is a Smart Contract?

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, enabling the performance of credible transactions without the need for intermediaries. These contracts are often associated with cryptocurrencies, as they can be used to facilitate, verify, and enforce the negotiation or performance of a contract.

Smart contracts can be used for a wide range of purposes, including the exchange of goods, services, and financial instruments. They can be particularly useful in situations where the parties involved may not trust each other, as the terms of the contract are enforced by the blockchain network and cannot be altered by any single party.