What is the role of smart contracts in blockchain banking?

Smart contracts are selfexecuting digital contracts that are encoded on a blockchain network. In the context of blockchain banking, smart contracts can automate various banking functions and ensure that transactions are secure and efficient.

Smart contracts can be used for a variety of banking functions, such as trade finance, supply chain finance, and asset management. For example, in trade finance, a smart contract can automatically trigger payment to a supplier when certain conditions are met, such as the receipt of goods at a specified location.

The role of smart contracts in blockchain banking is to increase efficiency and reduce costs by automating processes that traditionally required significant manual intervention. Smart contracts can also improve security by ensuring that transactions are executed only when all conditions are met, and that records of all transactions are stored securely on the blockchain network.