A smart contract is a bit of code that functions like a self-executing contract, via the blockchain. The terms of the contract are written into the code itself, so when a specific term has been met, the next stage of the contract can occur. Upon each ‘task’ being completed, the smart contract will indicate what needs to occur next. Each step of the contract takes place on the blockchain and therefore is immutable as it’s distributed among all the nodes of the network. The benefits of smart contracts are that they are secure, safe, and private, and can simplify several complex processes.