Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on blockchain platforms like Ethereum, which provides the necessary infrastructure. When predefined conditions are met, the contract automatically executes its terms without the need for intermediaries. For instance, in a cryptocurrency context, a smart contract can facilitate transactions where funds are released only when specific conditions are satisfied, such as the delivery of goods. This automation reduces the risk of fraud and enhances trust between parties. Developers use programming languages like Solidity to create these contracts, which can manage everything from simple transactions to complex decentralized applications (dApps). However, it’s crucial to ensure that the code is secure and thoroughly tested, as errors can lead to significant financial losses.

source: https://www.blockchainappfacto...currency-development