Smart Contracts
Smart contracts are digital agreements that automatically execute when predetermined conditions are met, functioning on blockchain technology. Think of them as self-enforcing contracts written in code. Once created, they eliminate the need for intermediaries, reducing costs and increasing efficiency. For example, if you were to rent an apartment, a smart contract could release the payment to the landlord only when you arrive at the property. This ensures transparency and trust, as all parties can verify the contract's terms and actions without relying on a central authority.
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Smart contracts are digital agreements encoded on a blockchain that automatically execute and enforce the terms when specific conditions are met. Think of them as computer programs that run when predetermined criteria are fulfilled, eliminating the need for intermediaries like banks or lawyers. They enhance trust and transparency by providing a secure, tamper-proof environment where transactions can occur without manual oversight. For example, a smart contract could automatically transfer funds from one party to another when a project milestone is achieved, ensuring both parties meet their obligations efficiently and without dispute.