GlossaryIntermediate
Smart Contract
Self-executing code stored on a blockchain that runs automatically when its conditions are met.
A smart contract is a program stored on a blockchain that runs automatically when predefined conditions are met. It extends blockchains beyond simple record-keeping into programmable agreements.
Because smart contracts execute on a blockchain, their code and, in many cases, their execution history are visible and verifiable by anyone, rather than depending on a single party to carry out the agreement.
Examples
- A smart contract can automatically release funds once two parties both confirm a condition has been met.
- Decentralized applications often rely on smart contracts to handle their underlying logic.