Smart Contract

Self-executing code on a blockchain that automatically enforces the terms of an agreement.

intermediate
technology

Explained Simply

Smart contracts are programs stored on a blockchain that run automatically when conditions are met. They enable DeFi, NFTs, DAOs, and many other crypto applications. For example, a lending smart contract can automatically liquidate a loan if collateral drops below a threshold. Smart contracts are transparent (anyone can read the code) but can contain bugs or vulnerabilities that hackers exploit.

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This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.