A utility contract is a type of agreement that allows users to access a specific service or product within a blockchain network. It usually involves the use of tokens that are issued by a project to facilitate transactions or services.These tokens can be used for various purposes, such as participating in a platform, accessing features, or buying products. Unlike security tokens, utility tokens are generally not meant to represent ownership or investment stakes.Utility contracts are often smart contracts, which are self-executing agreements with the terms directly written into code. They automatically enforce and execute conditions when specific criteria are met. Users engage with utility contracts by purchasing tokens through an initial coin offering (ICO) or other fundraising methods. The value of the tokens may fluctuate based on demand and the success of the associated project. Overall, utility contracts play a crucial role in creating ecosystems where users interact with services and contribute to the platform’s growth.