Smart contracts are automated digital agreements stored on the blockchain, executing automatically when predefined conditions are met. They offer a secure, transparent, and efficient way to handle transactions, removing the need for intermediaries and reducing paperwork.
These contracts use simple “if/when…then…” logic in their code, and once conditions are met, a network of computers executes the specified actions. The blockchain updates with the completed transaction, ensuring security and transparency. Smart contracts have applications in various industries, including healthcare, supply chain management, and trade finance, where they improve efficiency, trust, and reduce costs.
By automating processes, smart contracts increase speed, accuracy, and security while eliminating errors and intermediaries. Their potential to streamline transactions across multiple sectors highlights their transformative role in digital finance.
