Smart contracts were first proposed in the early 1990s by Nick Szabo, a professor of law, computer scientist and cryptologist. He defined smart contracts as computerised transaction protocols that fulfil the terms of a contract. The history of smart contracts is closely related to the development of modern blockchain technology.

First Ideas and Concepts (1990s) : The basic ideas of smart contracts were introduced by computer scientist Nick Szabo in the early 1990s. Szabo developed concepts on contracts that would work with computer codes, operate automatically and act automatically when certain conditions were met.

1. Bitcoin and the Emergence of Blockchain Technology (2009): An important milestone in the development of smart contracts was the creation of Bitcoin by Satoshi Nakamoto in 2008 and the launch of the first blockchain network, Bitcoin, in 2009. Blockchain is known as distributed ledger technology and enables secure and transparent recording of data.
2. Ethereum and Smart Contract Platform (2015): A major step in making smart contracts widely available was taken with the Ethereum platform, founded by Vitalik Buterin in 2015. Ethereum is a general-purpose blockchain platform and supports Solidity, a Turing complex language that enables the programming and execution of smart contracts.
3. Expansion of Smart Contracts Use Cases (2010s and After): Towards the end of the 2010s and into the 2020s, the use cases of smart contracts gradually expanded. The potential of smart contracts has been explored and implemented in many sectors such as financial services, insurance, supply chain management, and real estate transactions.
4. Regulation and Legal Framework (Today): With the widespread use of smart contracts, regulation and legal framework creation processes have gained importance. Regulatory bodies and legal experts are working on the legal status, applicability and responsibilities of smart contracts.

Today, smart contracts are recognised as an important field for both technology developers and lawyers. The potential and use of this technology is expected to expand further in the coming years, transforming business processes in various industries.

Smart contracts are contracts that have emerged with blockchain technology and can operate automatically in a digital environment and perform certain actions depending on the conditions. They can be considered as digitalised and automated versions of traditional legal contracts.

The main features of smart contracts are as follows:

1. They are Code Based: Smart contracts usually consist of codes written in a programming language. These codes automatically perform certain actions when certain conditions are met.
2. Automatic Execution: Smart contracts run automatically when certain conditions are met and perform the programmed transactions. Without the need for human intervention, transactions are completed automatically when the conditions defined in the contract are fulfilled.
3. Trust and Transparency: Since they work on blockchain technology, the functioning and results of smart contracts are usually transparent and reliable. They are recorded on a publicly accessible distributed ledger.
4. No Third Party Required: Unlike traditional legal contracts, smart contracts do not require the intervention of a third party. This reduces costs and speeds up transactions.
5. Security with Cryptography: Smart contracts are protected and secured by cryptographic methods. This provides protection against potential fraud and data manipulation.

Smart contracts are generally used on blockchain platforms such as Ethereum and are of great interest especially in areas such as finance, insurance, supply chain management. However, they can also bring some technological and legal challenges. For example, unexpected results may occur due to software bugs or incomprehensible coding. In addition, the competence of existing legal systems in analysing and dispute resolution of smart contracts is also a matter of debate.

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