The smart contract can be compared to the vending machines. One will go to the lawyer or a notary, pay their charges, and then wait to obtain the certificate. However, in the case of smart contracts, it is required to just drop bitcoin into the ledger. After which, your license, escrow, or else drops into your account.

Similar to the traditional contract, smart contracts also define some rules and penalties around an agreement. In addition, they also automatically enforce those obligations. The smart contracts can work on their own, and can also be enforced along with any number of other smart contracts.

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