Smart Contracts Explained Smart contracts are computer programs that run on a blockchain and enable the automation of agreements and transactions without the need for intermediaries. These contracts are automatically triggered when certain predefined conditions are met. How Do They Work? A smart contract consists of code that defines the rules and conditions of the agreement. Once deployed on the blockchain, it cannot be modified, ensuring transparency and security. Advantages of Smart Contracts Decentralization: They do not rely on a central entity, reducing the risk of fraud. Automation: They eliminate the need for intermediaries, speeding up the process and reducing costs. Transparency: All parties can see the code and transactions, increasing trust. Common Applications Smart contracts are used in various areas, including: Finance: In DeFi, for loans and insurance. Real Estate: For buying and selling properties. Digital Identity: For verifying identities without compromising privacy. Conclusion Smart contracts represent a significant innovation in how agreements and transactions are made. Their ability to operate autonomously and securely on a blockchain makes them a valuable tool in today’s digital world.