A contract factory is a smart contract that is designed to create other smart contracts. The contract factory serves as a template for creating new contracts that share the same code and functionality.
With a contract factory, users can easily deploy new contracts on the blockchain without having to write the code from scratch. This saves time and effort, especially for contracts with similar functionality.
A contract factory can also include custom parameters that can be used to personalize each new contract created from the factory. This allows for greater flexibility and customization in the contract creation process.