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A smart contract is a self-executing digital contract that is built on top of a blockchain network. It is a computer program that can automatically enforce the terms of a contract without the need for intermediaries or third parties.

Smart contracts are designed to execute automatically when certain conditions are met, such as the transfer of a certain amount of cryptocurrency from one party to another. They are coded in a way that makes them tamper-proof, transparent, and secure.

Smart contracts can be used to automate a wide range of transactions and processes, from simple payments to complex financial agreements. They are increasingly being used in a variety of industries, including finance, real estate, and supply chain management, to streamline processes, reduce costs, and increase transparency and security.