The term “smart contract” facilitates a self-executing agreement with the terms directly written into code on a blockchain. These contracts automatically enforce and execute conditions based on preset rules, minimizing the need for intermediaries. This leads to increased efficiency, reduced costs, and enhanced trust between parties, as all transactions are transparent and auditable. Smart contracts find applications in various sectors, including finance, supply chains, and legal agreements, enabling automation of complex processes while ensuring adherence to contractual obligations.