Smart contracts are like digital contracts but instead of being written on paper they’re written in computer code they automatically do things when certain conditions are met so you don’t need a lawyer or middleman to enforce them once a smart contract is set up and the conditions are put in place it just runs on its own no one has to manually approve it or check it out it’s all handled by the code
these contracts usually run on blockchain so they’re super secure and can’t be changed once they’re deployed like if two people agree that when one person sends money the other will send a product a smart contract will make sure the product is only sent when the payment is made if something doesn’t happen the contract won’t execute this way everything is done automatically with no need for trust between the two people
they’re used for all kinds of things like finance to move money around when certain things happen or even in real estate where the contract transfers property once payments are completed people think smart contracts could change industries because they remove the need for intermediaries and can save time and money but they’re also tricky because the code has to be written perfectly if there’s a mistake it can’t be changed easily so smart contracts are powerful but they also need to be handled carefully.
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