# What is Smart Contracts?

They are digital contracts that work automatically when certain conditions are met and do not require an intermediary.

## Overview
Traditional contracts require an intermediary, such as a lawyer or bank, to check whether someone is following the rules. Smart contracts, on the other hand, are written in code and the transaction is completed automatically when the conditions are met (for example, a payment is made). These codes are unchangeable and transparent.

*Analogy: It's like a vending machine: When you insert the coin and choose the product, the machine recognizes that the condition is met and gives you the product; There is no need for a salesman to intervene.*

## How it works
They are pieces of code that run on blockchain networks. The specified rules are encoded and verified by the network and executed automatically.

## Where it is used
It is used in financial transactions, ownership transfers and digital asset management.

## Commonly confused with
It can be confused with just a digital signature, but smart contracts contain a transaction logic.

## Frequently asked questions
**Can it be changed?**
No, once uploaded to the blockchain they cannot be changed.

**Is it safe?**
The code must be written without errors; Incorrect codes may create vulnerabilities.


## Related terms
- [API](/en/dictionary/api/)
- [Security Scanner](/en/dictionary/security-scanner/)
- [Distributed](/en/dictionary/distributed/)

## Related tools
- [Genlayer Project Boilerplate](/en/discover/genlayer-project-boilerplate/)

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Source: TreScout Dictionary · https://trescout.com/en/dictionary/smart-contracts/