What is a smart contract and how does it work within blockchain technology?

A smart contract is a selfexecuting digital contract that is stored on a blockchain. It is a computer program that runs on a blockchain network and automatically executes the terms of an agreement between two or more parties when certain conditions are met.

Smart contracts are created using computer code and are stored on a blockchain network, making them immutable and transparent. The terms of the contract are written in code and are executed automatically when certain conditions are met. These conditions are typically triggered by events or actions recorded on the blockchain.

Smart contracts have several advantages over traditional contracts, including increased efficiency, reduced costs, and increased transparency. They can be used in a wide range of industries, from finance and real estate to supply chain management and healthcare.

For example, in supply chain management, smart contracts can be used to automate the tracking and tracing of goods, enabling realtime visibility into the movement of products and reducing the risk of fraud and errors. In healthcare, smart contracts can be used to securely store and share patient data, enabling faster and more efficient processing of claims and payments.