Self-executing contracts with terms directly written in code on the blockchain.
A Smart Contract is a self-executing program stored on the blockchain that automatically runs when predefined conditions are met. Smart contracts eliminate intermediaries by enforcing rules through code rather than human oversight.
They form the foundation of DeFi, NFTs, DAOs, and modern Web3 applications.
How Smart Contracts Work
Written in code (e.g., Solidity for Ethereum)
Deployed on a blockchain
Conditions, rules, and actions are immutable once live
Automatically execute transactions and logic
Transparent and verifiable by anyone
Smart contracts create trustless interactions between users and applications.
Use Cases
Decentralized exchanges (AMMs)
Lending protocols and liquidations
NFT minting and marketplaces
DAO governance votes
Automated payments or escrow
Token vesting schedules
Benefits
No intermediaries
Reduced costs
Transparency and auditability
High automation
Security through decentralization
Summary
A smart contract is code on the blockchain that automatically executes actions when conditions are met, enabling decentralized applications and automated transactions.
