Ethereum smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts enable the performance of credible transactions without third parties.
These transactions are trackable and irreversible. Ethereum is the most prominent smart contract platform.
Ethereum smart contracts are still in their infancy. Their use is currently mostly limited to cryptocurrency exchanges and other financial applications.
However, their potential use cases are much broader. For example, smart contracts could be used to manage supply chains, voting systems, and Internet of Things devices.
The use of smart contracts has some risks. For example, if a mistake is made in the code of a smart contract, it can result in the loss of funds.
Additionally, smart contracts may be vulnerable to hacking if they are not properly coded. Despite these risks, many believe that smart contracts have great potential.