Smart contracts are the fundamental components of applications on Onschain. They are computer programs stored on the blockchain that enable the conversion of traditional contracts into digital counterparts. Smart contracts are highly logical, adhering to an “if this, then that” structure. This implies that they operate precisely as programmed and cannot be altered. Onshain and some other protocols can achieve this, but certain blockchains, most notably Bitcoin, cannot. Consider a standard residential lease agreement as an example of a typical contract. In return for your monthly rent, the landlord provides you with a safe and secure living space. To put it simply: if you lose your housing, you stop paying rent; if you stop paying rent, you lose your housing. Normally, it is expected that the individuals signing the contract will fulfill the terms of the agreement. However, one of the most significant issues with a traditional contract is the need for trusted individuals to follow through with the contract’s outcomes. If a tenant fails to meet their lease obligations, or conversely, the landlord fails to fulfill their responsibilities, either party is likely to feel cheated. Smart contracts digitize traditional agreements by converting the terms of a contract into computer code that automatically executes when the contract conditions are satisfied.