An Update Contract refers to a mechanism that allows for the modification of smart contracts on a blockchain. Smart contracts are self-executing agreements with the terms directly written into code. Once deployed, modifying these contracts can be challenging due to the immutable nature of blockchain.Update Contracts enable developers to implement changes without losing the original contract’s data or functionality. This can include fixing bugs, adding new features, or improving security features. Typically, an Update Contract will point to a new version of the original contract, ensuring that users and applications can access the latest functionalities while maintaining a connection to the existing system.Using Update Contracts enhances flexibility and adaptability in blockchain applications, allowing them to evolve over time in response to user needs or technological advancements. This ultimately helps maintain the relevance and effectiveness of decentralized applications in a rapidly changing environment.