Smart contracts are self-executing contracts that are stored on the Ethereum blockchain. They are programmed to execute automatically when certain conditions are met, which makes them a powerful tool for executing complex transactions and agreements without the need for intermediaries.

Ethereum provides the platform for smart contracts to be created and executed. By using a decentralized ledger system, Ethereum ensures that smart contracts are secure, transparent, and tamper-proof.

Smart contracts have numerous potential use cases, including in industries such as finance, real estate, and supply chain management. By using smart contracts, it is possible to streamline and automate complex transactions, which can save time and money for all parties involved.

Overall, Ethereum and smart contracts offer a powerful combination that has the potential to revolutionize the way we think about transactions and contracts in a variety of industries.

Works Cited:

Wood, Gavin. "Ethereum: A Secure Decentralised Generalised Transaction Ledger." Ethereum Yellow Paper, 2014.
Swan, Melanie. "Blockchain: Blueprint for a New Economy." O'Reilly Media, Inc., 2015.