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Smart contracts are automated contracts that are using computer protocol to execute a negotiation without a third party. Essentially, smart contracts are computer programs written on top of the Ethereum blockchain.
When a program’s condition is met, the smart contract automatically performs the orders that were coded, whether it’s to move tokens between Ethereum addresses or do other types of transactions. Smart contracts on Ethereum blockchain can be run by users or by other smart contracts.
Basically, smart contracts are just code and can be programmed for anything. What distinguishes it from other computer programs, this code lives on the Ethereum blockchain and has an Ethereum address. The smart contract is most typically used to create the ERC-20 token, which is the most widely used token standard on the Ethereum network.
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