# Introduction to Smart Contracts

## What is a Smart Contract?

A smart contract is a self-executing contract where the terms of the agreement are written directly into lines of code. These contracts automatically enforce and execute the terms when predefined conditions are met, without the need for intermediaries. Smart contracts run on blockchain networks, ensuring transparency, security, and immutability.

## Real-world Applications of Smart Contracts:

* **Decentralized Finance (DeFi)**: Automated financial services like lending, borrowing, and trading.
* **Supply Chain Management:** Tracking goods and verifying transactions across the supply chain.
* **Voting Systems:** Secure and transparent voting mechanisms.
* **Insurance:** Automating claims processing based on predetermined conditions.

Smart contracts are fundamental to decentralized applications (dApps) and can be programmed in various languages, including Rust for Arbitrum Stylus.

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