A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist on the blockchain network.

Smart contracts allow for the automation of a wide range of processes and can be used to facilitate, verify, and enforce the negotiation or performance of a contract. They can be used in a variety of industries and can help to streamline processes, reduce costs, and increase the security and transparency of transactions.

Smart contracts can be used for a wide range of applications, including the exchange of money, property, shares, or anything of value in a transparent, conflict-free way while avoiding the services of a middleman. They can also be used to facilitate the management of supply chain logistics, facilitate the creation and execution of legal agreements, and enable the creation of decentralized autonomous organizations (DAOs).

Overall, the use of smart contracts can help to increase efficiency, reduce the risk of fraud and corruption, and increase trust between parties involved in a transaction.