Smartcontracts are tamper proof digital agreements. Smartcontracts are run in a decentralized platform, where none of the parts control.

So when you make a smartcontract with someone, it is registered in the blockchain. Once the conditions for the contract are met, it will be automatically executed.

So let's suppose you make a smartcontract with someone. When you transfer 50 shitcoins to the smartcontract address (which is already funded with some Eth), it will automatically transfers you 1 eth.

None of the parts control the smartcontract address, so when you make the 50 shitcoins transfer, the smartcontract will automatically transfer you 1 eth.


There are many other applications, this was just an example.


Ethereum is a blockchain specifically designed to run smartcontracts.