A smart contract is a computer program that automatically runs on the blockchain. When the conditions of the contract are met, the smart contract will automatically execute without the need for third-party intervention.
For example, two parties sign a contract via the blockchain, when one party transfers money, the smart contract will automatically transfer assets or ownership to the other party. As a result, the two parties do not need to know each other's identities or trust each other, the entire process is carried out and recorded transparently. Smart contracts help reduce intermediary costs (such as lawyer fees, banking) and transaction times.
This is also the foundational technology for decentralized applications (dApps), decentralized finance (DeFi), and NFTs, as it allows for the creation of self-executing and more secure systems.#SmartContracts
