The concept of smart contracts is underpinned by blockchain technology, which allows for the creation of self-executing contracts with the terms directly written into code. Smart contracts automatically enforce and execute the agreed-upon actions when certain conditions are met, reducing the need for intermediaries and enhancing trust. Blockchain’s inherent characteristics, such as decentralization, transparency, and immutability, ensure the security and reliability of these contracts. As a result, smart contracts are increasingly used in various fields, including finance, real estate, and supply chain management.