🤓What is a smart contract

Built on top of the blockchain, it's a self-executing contract with the terms of the agreement between multiple parties being directly written into lines of code. The code and the agreements contained therein are stored and replicated on a blockchain network.

They streamline financial transactions by automating processes such as payments and settlements. This automation reduces transaction times and costs, making financial interactions more efficient. Smart contracts in web3 also enhance trust and security, as the contract terms are immutable once deployed on the blockchain, ensuring that all parties adhere to the agreed-upon terms.

In the context of commerce, smart contracts can be used to facilitate the exchange of cryptocurrency or other assets, such as selling of digital products, goods and services without any central entity managing the interaction.