Smart Contracts are self-executing codes that give you the security of Blockchain Technology and empowers you to store your contract terms in digital format securely. Smart Contracts are immutable and get automatically executed when exposed to a trigger event (certain kind of data input).
In a Global economy, businesses need to trade with international partners, out of which some can be unknown to them. As fraudulent activities are on the rise, it is difficult to trust an unknown entity. Nonetheless, it is always better to secure yourself from unforeseen circumstances and be on the safer side. Smart Contracts address these concerns and provide security when dealing with unknown entities, domestic or international.
However developing and designing a Smart Contract via coding from scratch can be a cumbersome task and requires a considerable amount of effort & resources.