A distributed contract is an agreement encoded in computer code that automatically executes actions when certain conditions are met. These contracts operate on a decentralized network, ensuring transparency and security.Unlike traditional contracts that require intermediaries, distributed contracts facilitate trust between parties through predefined rules. Once deployed on the blockchain, they cannot be altered or tampered with, which reduces the risk of fraud or disputes.The most common type of distributed contract is a smart contract. For instance, in a financial transaction, the contract can automatically transfer funds once delivery is confirmed, removing the need for third-party validation.This technology is utilized in various applications, including finance, supply chain management, and insurance. By streamlining processes and minimizing human intervention, distributed contracts can enhance efficiency and lower costs for businesses and individuals alike.