The term "Smart Contracts" is primarily found in the areas of blockchain, digital transformation, and crowdfunding and finance.

A smart contract is a digital contract stored on a blockchain. Unlike traditional contracts, it functions automatically: as soon as predetermined conditions are met, the contract is automatically executed – entirely without an intermediary such as a notary or lawyer.

For example, when purchasing a concert ticket, a smart contract can be programmed so that the ticket is not transferred to the buyer until payment has been successfully made. Once this has happened, the transaction is recorded on the blockchain and no one can alter it afterwards.

This makes smart contracts particularly secure and transparent. They also save time and costs, as many steps are automated. Their use simplifies and speeds up many processes in the financial world, as well as in digital marketplaces and e-commerce.

Smart Contracts are considered an important foundation for the further digitalisation of business processes and offer new opportunities for companies and private individuals to conclude contracts more securely and efficiently.

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