A smart contract is an Internet-based automated process of facilitating, verifying, and enforcing the terms of agreement via a digital transaction between two or more contracting parties for its proper execution without the need for intermediaries like lawyers, banks, or police. The blockchain’s decentralized character makes for a swift, cheap, and secure transaction that is transparent and irreversible. Contracting parties need not be identified, meaning, transactions can be anonymous.
Smart contracts allow the trustless and permissionless exchange of almost anything of value from money, cryptocurrency, shares, real estate, properties, NFTs, etc. Smart contracts can also be used for other circumstances such as insurance premiums, financial derivatives, property law, credit enforcement, breach contracts, legal processes, financial services, accounting, and crowdfunding.
Smart contract use cases are being explored in the fields of government, healthcare, management, supply chain, property records, law, case history, transportation, automobile, and eCommerce.