A smart contract is a computer algorithm designed to generate, control, and provide information about ownership. Mostly, smart contracts work using blockchain technology.
The parties sign a smart contract using methods similar to the creation of a crypto transaction. Once signed, the contract is saved on the blockchain and takes effect. Ethereum blockchain nodes allow for automated execution of contract clauses.
The duties of the parties are provided in the form of if-then (for example: if Party A transfers money, then Party B transfers the goods). There can be two or more members and they can be individuals or organizations. As soon as conditions are met, the smart contract independently executes the transaction.
Smart contracts allow you to exchange money, goods, real estate, securities, and other assets. The contract is stored and replicated in a decentralized ledger in which information cannot be falsified or deleted.