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A smart contract is one that can be executed without human intervention and is based on a simple “if/when…then…” statement that is written into code on a blockchain. In other words, if certain conditions are met and verified, then a network of computers can execute the orders that were written in the code.

For example, if two identity-verified parties both sign an electronic agreement, then funds (crypto) could automatically be released from an escrow account and provided to the wallet of one of the parties.