An event-driven smart contract is a self-executing contract where the terms of the agreement are directly written into code. These contracts automatically execute actions based on predefined events or conditions without needing human intervention.When a specific event occurs, such as a financial transaction, data input, or external trigger, the smart contract reacts by executing the predetermined actions. This can include transferring assets, updating information, or issuing notifications.Event-driven smart contracts enhance automation and efficiency by ensuring that processes occur only when necessary. They can improve transparency and trust, as all actions taken by the smart contract are recorded on the blockchain, making them publicly accessible and verifiable.These contracts are useful in various applications, including finance, supply chain management, and insurance. By reducing reliance on intermediaries, event-driven smart contracts can streamline operations and lower costs, making transactions faster and more secure.