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before we dig into this video lets go over a quick recap of what a smart contract is smart contracts are simply agreements written in code that are usually ran on a blockchain now you might be wondering why a blockchain well what happens on a blockchain cannot be changed so when you and someone else come up with a financial agreement to change that agreement you would have to change millions of computers all around the world its no longer just your word versus someone elses word or an agreement written on paper its an agreement shared with millions of other people who have a copy of it moving on smart contracts can be as simple as if i pay you ten dollars today youll pay me back one dollar every day for the next 10 days they can then get more complicated like if i give you ten dollars of ethereum youll give me ten dollars of doggy coins where basically the code can actually check if both people truly have ten dollars of each that they want to trade and then automate the trading