Smart Contracts are self-executing digital agreements written on a blockchain protocol. To put it simply, a Smart Contract is a computer program that can automatically execute the terms of a contract. The goal of Smart Contracts is to provide better security, accuracy and reliability compared to traditional paper-based contracts while offering lower transaction fees and faster transactions.
A Smart Contract is an agreement between two or more people on a blockchain network executed in a digital form. This form of agreement is created using code on the blockchain, and its terms are written in self-executing code that contains rules and conditions set by the parties involved.
The code defines the obligations and responsibilities of each party and ensures that all parties do what they committed to do once the contract is validated. The advantage of using Smart Contracts instead of traditional contracts is that it eliminates the need for third-party enforcement since the conditions of the agreement are automatically enforced on the blockchain in a secure, tamper-proof environment.
Additionally, Smart Contracts can provide more control over the ownership of data and assets by avoiding manual input mistakes, thereby reducing costs and improving accuracy. Smart Contracts can be used in many industries such as finance, energy, healthcare, real estate, and any industry that involves an exchange of data or assets.
It has already proven to be beneficial in many cases by providing better security and trust between two or more parties while eliminating the need for manual intermediation.