Smart contract

A smart contract is a self-executing digital contract with the terms of the agreement directly written into lines of code. These contracts automatically execute and enforce actions when predefined conditions are met, without the need for intermediaries or manual intervention. Smart contracts run on blockchain networks, which provide a decentralized and secure environment for their execution. By leveraging blockchain technology, smart contracts ensure that transactions and agreements are transparent, immutable, and resistant to tampering, making them an essential tool for automating and streamlining complex processes.

The versatility of smart contracts allows them to be used in a wide range of applications across different industries. In decentralized finance (DeFi), smart contracts are the backbone of platforms that offer services such as lending, borrowing, and trading without the need for traditional financial intermediaries. They enable peer-to-peer transactions to occur in a trustless environment, where all parties can rely on the contract to automatically enforce the terms of the agreement. Beyond DeFi, smart contracts are used in supply chain management to track the movement of goods, in digital identity systems to verify credentials, and in real estate to facilitate property transactions.