Smart contracts are computer programs that automatically execute when predefined conditions are met. They run on blockchain technologies and allow agreements between parties to be carried out without the need for intermediaries.
They provide security, transparency, and efficiency. Since they are recorded on a blockchain, smart contracts cannot be unilaterally modified and their execution is automatic, reducing human error and operational costs. They also help build trust among organizations collaborating within the same ecosystem.
Smart contracts are used in supply chains to automate payments when logistics milestones are met, in the financial sector to securely execute transactions, and in license and intellectual property management to automatically validate digital rights.