Concept of Smart Contracts

A smart contract is a self-executing agreement stored on a blockchain, where the terms are written in code. It automatically enforces conditions, such as releasing funds or transferring assets, once predefined criteria are met. This eliminates the need for intermediaries, reduces errors, and increases transparency. Think of it as a digital contract that manages itself, ensuring all parties fulfill their obligations without manual intervention, making transactions more efficient, secure, and trustworthy.