What is a smart contract?

A smart contract is a selfexecuting program that automates the process of verifying and enforcing the terms of a contract. It is a piece of code that runs on a blockchain network and can facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts are used to remove the need for intermediaries or middlemen, streamline processes, reduce transaction costs, and improve the efficiency of contractual arrangements. They can be used to execute a variety of transactions, including financial agreements, supply chain management, intellectual property rights, and more. Once deployed on the blockchain, a smart contract is immutable and tamperproof, meaning that it cannot be altered or deleted by anyone, including its creators.