Smart contract, What does it mean?

Definition of Smart contract

An algorithmic program that enacts the terms of a contract automatically based on its code. One of the main value propositions of the Ethereum network is its ability to execute smart contracts. A smart contract is a self-executing contract where the terms of the contract are written into the code and it is executed when all the criteria required is carried out. The contract is irreversible and is generally thought to be something that will remove many of the so called ‘middle-men’ in various fields. As a simple example, a smart contract could replace an estate agent where a contract is written to transfer the deeds of a property to the new owner once funds have been received by the seller.

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