Smart Contracts are of three types:  Smart Legal Contracts – These are legally enforceable and require involved parties to meet their contractual obligations.   Decentralized Autonomous Organizations (DAOs) – These are for the communities that have to follow specific rules such as an organization. These rules are coded into smart contracts combined for automated governance of the organization.   Application Logic Contracts – These contracts are application-based codes synced with other blockchain contracts to execute specified functions. Such contracts facilitate communication across different devices, such as the Internet of Things (IoT) over a blockchain.