Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute actions when pre-defined conditions are met, without the need for intermediaries. Smart contracts are most commonly associated with blockchain technology, particularly on platforms like Ethereum, where they enable decentralized applications (dApps) and automate complex transactions.

Example

A smart contract on the Ethereum blockchain could automatically transfer ownership of a digital asset once payment is made, without the need for a third party to oversee the transaction.