We understand that Smart contracts are lines of code that are professionally stored on a blockchain and automatically execute when predetermined terms and conditions are mutually met. At basic level, they are programs that run as they have been set up to run by the people who developed them.

It is also noted that a smart contract is a systematic protocol that is intended to digitally verify, facilitate or enforce the performance of a contract. Smart contracts permit the exchange of credible transactions without the need for a third party member. Moreover block chain exists as a perfect example of a Smart contract owing to its decentralization between all allowed parties which allows transaction without the need to pay any intermediaries.