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In this video tutorial, a quick recap of smart contracts is provided. Smart contracts are agreements written in code that run on a blockchain. The use of a blockchain ensures that agreements cannot be changed easily, as they are distributed across millions of computers worldwide. Smart contracts can range from simple agreements, such as a payment exchange, to more complex transactions involving multiple cryptocurrencies. The code within smart contracts can verify if both parties have the necessary funds for the trade and automate the transaction process.