1.Agreement Creation: The terms of the contract are defined in code and stored on the blockchain.

2. Conditions: Specific conditions are set within the contract.

3. Execution: When these conditions are met, the contract automatically executes the predefined actions. This could involve transferring funds, issuing a document, or triggering another smart contract.

4. Verification: All actions taken by the smart contract are recorded on the blockchain, providing a transparent and auditable record.