Smart contracts are computer programs or
protocols for automated transactions
that are stored on a blockchain and run in response to meeting certain
conditions. In other words, smart contracts automate the execution of
agreements so that all participants can ascertain the outcome as soon as
possible without the involvement of an intermediary or time delay.
A smart contract is a sort of program that encodes business logic and operates on a dedicated virtual machine embedded in a blockchain or other distributed ledger.
Benefits of Smart Contract
The contract is immediately executed
when a condition is met.
Because smart contracts are digital and automated, there is no paperwork to
deal with, and
No time was spent correcting errors that can occur when filling out
documentation by hand.
Because blockchain transaction records are encrypted, they are extremely difficult to hack. Furthermore, because each entry on a distributed ledger is linked to the entries before and after it, hackers would have to change the entire chain to change a single record.