Smart contracts are self-executing agreements with the terms of the contract directly written into code. They run on blockchain technology, ensuring transparency, security, and decentralization. Once predefined conditions are met, the contract automatically executes without the need for intermediaries. For example, if two parties agree on a payment upon delivery of goods, the smart contract releases the funds only when the delivery is confirmed. This eliminates trust issues and reduces costs. Smart contracts are used in various fields, including finance, real estate, and supply chain management, offering a reliable and efficient way to automate processes and enforce agreements.
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