$BTC Smart contracts are a computer protocol stored on the blockchain that allows for automated execution of contract terms. They are a set of bytecode commands that will be executed by an interpreter built into the host. Smart contracts offer many possibilities, including automation of contract execution, elimination of the need for third parties, increased security, and reduced transaction costs. They can be applied in various fields, such as healthcare, lending, electoral systems, media, the Internet of Things, rent, supplies, clearing, etc. Smart contracts can perform functions similar to those of a vending machine, ensuring automatic execution of contract terms without the need for a third-party administrator.