A smart contract is indeed a self-executing contract with the terms of the agreement encoded directly into the underlying code. By utilizing blockchain technology, smart contracts enable the creation of decentralized applications (DApps) and provide a secure and transparent way to enforce contractual agreements.

By eliminating the need for intermediaries, smart contracts can streamline processes, reduce costs, and increase efficiency in various industries. They have the potential to revolutionize sectors like finance, supply chain management, insurance, voting systems, and more by enabling direct peer-to-peer interactions without relying on centralized authorities.