Smart contracts follow simple “If/when… then…” statements written in code on a blockchain/binance. A network of computers executes actions when predetermined conditions have been met and verified. These actions could relate to releasing funds, registering a property, issuing a fine, etc.

The blockchain/binance is updated when the transaction is completed; therefore, it is no longer possible to change it, and only parties with permission can see the results. Within a smart contract, there can be as many stipulations as necessary, and, to set the terms, participants must determine how transactions and their data are represented on the chain, agree on the rules governing those transactions, explore possible exceptions, and define a framework for resolving disputes.
Once all this is stipulated, a developer can program the contract.