Smart contracts are applications that execute on a blockchain.
Unlike a contract in the form of a paper document, a smart contract is in the form of computer code and only executes when specified conditions are met. It cannot be tampered with. It can’t be altered, even by the person who created it. No one can prevent the execution of a smart contract.
If conditions are met, they execute. If not, they don’t.
Examples Of A Smart Contract
A smart contract could be a release funds for someone’s birthday each year.
It could be an escrow service that releases funds when goods are delivered.
It could validate voters’ identities during elections and terminate when their vote is cast so as to prevent election fraud.
Any form of contract you can think of can be coded as a smart contract. Because a smart contract is written to a blockchain, it is immutable.
Rock Solid Digital Agreements
Smart contracts are self-verifying and self-executing. They offer a more robust, efficient form of digital agreement and will reduce the need for various third-party actors, including lawyers and administrators.
See also: Chainlink