Basically, Smart Contracts are small programs that run on a block chain and are based on a simple if-then function that they can execute automatically. Similar to a classic contract, conditions and actions are defined for this purpose. Smart Contracts benefit from the properties of the block chain and are unchangeable, transparent and do not require an intermediary for processing. Instead, the functionality of the block chain guarantees secure execution of contracts at minimal cost. The advantages are many and varied. Intelligent contracts can be executed automatically and without loss of time, without being dependent on intermediaries or high transaction costs.