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Smart contracts are self-executing contracts with the terms written into code on a blockchain. They automate and enforce agreements without intermediaries.
How They Function:
Code Creation: Terms are coded and deployed on the blockchain.
Condition Monitoring: The contract monitors specific conditions.
Execution: When conditions are met, the contract automatically executes actions (e.g., transferring funds).
Immutable Record: All transactions are recorded on the blockchain, ensuring transparency and security.