Smart contracts are decentralised programmes that, when performed, can result in the provision of services, the exchange of money, the unlocking of information protected by digital rights management, or different types of data manipulation, such as the substitution of a name on a property title. It may also be used to enforce privacy protection and allow the selective release of privacy-protected data to satisfy a specific request, and it comes with a variety of designs for building, disseminating, maintaining, managing and upgrading programmes that support smart contracts. They can be kept in a distributed ledger technology, such as a blockchain, and used in a variety of payment systems and digital exchanges that include bitcoin and other cryptocurrencies.
Even though it has the term "contracts'' in its name, smart contracts are not legally binding contracts. Their principal function - that has been put into them to acknowledge a set of conditions - is to programmatically execute business logic that executes various operations, procedures, or transactions. It must go through specific legal stages and procedures in order to relate this execution to legally enforceable agreements between parties.