What are smart contracts and how are they used?

Smart contracts are self-executing contracts that contain the terms of a digital agreement between two or more parties. They are written in computer code on a blockchain and can automatically enforce the terms of the agreement when certain conditions are met. Smart contracts can be used to automate many types of business processes, including escrow payments, title transfers, real estate transactions, and automated insurance claims. They can also be used to reduce the costs associated with manual due diligence, legal fees, and other administrative tasks.