Despite the name, smart contracts are not contracts with any form of intelligence.

Instead, a smart contract is a program that runs on a blockchain, essentially just lines of code.

Anyone using the blockchain can access and interact with these programs.

Smart contracts have a wide range of applications.

They enabled innovations such as NFTs, and all DeFi applications (dApps) are built on smart contracts.

However, caution is essential – bugs or vulnerabilities in the code can have severe consequences.