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**Smart contracts** are fundamental to the operation of the MSC Protocol. These are self-executing contracts written in code. They automate many of the functions, such as transferring funds, executing trades, and distributing rewards. Smart contracts eliminate the need for intermediaries. They also ensure that transactions are transparent, immutable, and tamper-proof. The smart contracts are designed to provide maximum efficiency and security, with regular audits and updates to ensure everything runs smoothly.
