You need to know that a smart contract is a digital contract that is executed automatically based on computer code without the need for a third party as an intermediary Smart contracts run on blockchain technology, which is a decentralized technology that uses the principles of distribution and cryptography to maintain data integrity. In smart contracts, the terms of the transaction agreement between the buyer and seller will be automatically entered into a line of code. Furthermore, the code will be stored in every node throughout the blockchain network.

This automatic smart contract will make all transactions on blockchain technology fully transparent. In addition, the code is decentralized and distributed on the network. Thus, users can easily track all transactions. In addition, its security is more guaranteed. Then, all parties involved in the transaction can also exchange without the need for a central authority. Therefore, smart contract users can even make trusted agreements anonymously so that they do not need legal mechanisms.