How do smart contracts ensure that agreements are automatically executed?

Smart contracts are self-executing programs stored on blockchain networks like Ethereum. They contain coded rules that automatically trigger when predetermined conditions are met, without requiring intermediaries. For example, a smart contract might automatically transfer payment when a delivery is confirmed. The blockchain network's computers verify and execute these actions, making them transparent and irreversible. Because the code runs exactly as written and is visible to all participants, both parties can trust the outcome. This eliminates the need for lawyers or middlemen, reducing costs and delays. However, smart contracts are only as reliable as their code—bugs or poorly written logic can cause problems that can't be easily reversed.