A smart contract is a self-executing contract with the terms of the agreement written directly into code on a blockchain. Utilizing decentralized networks, these contracts automatically enforce and execute transactions when predetermined conditions are met, removing the need for intermediaries. This technology enhances transparency and trust, as all parties can access the contract’s code and verify results. By streamlining processes, smart contracts reduce errors and enhance efficiency in transactions across various sectors, such as finance, real estate, and supply chain management.