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What are smart contracts, and how do they work?

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Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller directly written into code. They run on blockchain technology, which is a decentralized and distributed ledger that records transactions across multiple computers in a secure and transparent way.

Here's how smart contracts work:

  1. Code Execution: Smart contracts are written in programming languages specifically designed for them, such as Solidity for Ethereum. The code contains the rules and conditions of the contract.
  2. Blockchain Platform: Smart contracts are deployed on blockchain platforms like Ethereum, Binance Smart Chain, or others. These platforms provide the infrastructure for executing and recording transactions.
 
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