Smart contracts are executed on a decentralized network, which means that:

1. No single entity controls the execution of the contract.

2. There is no central point of failure that can be exploited.

3. The contract is executed by a network of nodes, ensuring redundancy and fault tolerance.

4. The decentralized network ensures that the contract is executed in a trustless and censorship-resistant manner.

Decentralized execution of smart contracts provides several benefits, including:

1. *Immutable execution*: The contract is executed exactly as written, without any possibility of modification or tampering.

2. *Fault tolerance*: If one node fails, the network can still execute the contract, ensuring high availability.

3. *Censorship resistance*: No single entity can block or reverse the execution of the contract.

4. *Transparency*: The execution of the contract is publicly visible, ensuring accountability and trust.

By executing smart contracts on a decentralized network, we can ensure that the rules and logic encoded in the contract are enforced in a fair, transparent, and resilient manner.