Let’s imagine an everyday situation.
Carlos rents a house to Ana. The rent is 500 USDC per month and is due on the 10th.
Normally, there’s a contract. The due date arrives, Ana pays, and Carlos checks that he received the money.
Now imagine that part of this process could be automated using blockchain.
That’s where the SMART CONTRACT comes in.
It is NOT a contract that thinks, nor is it artificial intelligence. Technically, it is a software program deployed on a blockchain that executes rules someone programmed in advance.