Smart Contract: Smart contracts are digital algorithms or computer programmes that facilitate, verify, or enforce the negotiation or performance of a contract. The smart contract describes a set of terms, which are automatically fulfilled by the network. All in one transaction!
The advantages to use “digital/smart contracts” allows companies to enter in a contractual agreement without the need to rely on honesty from the respective counterparty involved in the transaction. The terms are embedded in the “digital contract” pre-ante the deal and the fulfilment of those contract is made sure by the software code without the need to have any human interaction. The contract between the counterparties can be fulfilled or broken only in accordance with the originally established terms.