A program that runs automatically on a blockchain. It’s like a digital agreement that can execute itself without a third party when certain conditions are met.
Smart Contract is a self-executing computer program or a transaction protocol that is stored on a blockchain and is intended to automatically execute, control, or document events and actions according to the terms of a contract or an agreement.
Think of a Smart Contract as a digital agreement that runs on an "if-then" logic. For example, a Smart Contract for a lending-protocol might say: "If a borrower deposits cryptocurrency as collateral, then an automated loan is disbursed." Once the conditions are met, the Smart Contract executes the terms of the agreement automatically, without the need for a human intermediary.
Because a Smart Contract is stored on a blockchain, its code is transparent and immutable. This means that once the contract is deployed, its rules cannot be changed. This provides a high degree of trust and security, as all parties can verify that the contract will execute exactly as programmed.
Smart Contracts are the foundation of DeFi and the entire Web3 movement. They are used to build DApps, automated market makers, DAOs, and other decentralized services. They have the ability to automate a wide range of financial and legal agreements, from lending protocols to digital art ownership and insurance policies. The most common blockchain for Smart Contracts is Ethereum, which was designed with the specific purpose of hosting these programs.
Smart Contracts have the potential to disrupt a wide range of industries by removing the need for a trusted third party. They introduce a new era of transparent, secure, and permissionless agreements that can be executed automatically on a blockchain, and they have unlocked a new wave of innovation in the digital world.
A digital form of a country's currency that is issued and controlled by the central bank.
An exchange run by a central company, like MaiCoin, that acts as a middleman for all trades.
This refers to financial services that are run by a central company, like a crypto exchange.
The ability to move cryptocurrencies and other data from one blockchain to another.
It's like a company run by code and managed by its members, with no single leader.
It's an app that runs on a blockchain instead of a central server, making it more resistant to censorship.
