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Smart contract: definition and meaning

A smart contract is a program stored on a blockchain that runs automatically when its conditions are met.

Why it matters

They power DeFi, NFTs and many apps, but bugs in the code can lead to lost funds.

Related terms

• DeFi
  DeFi, short for decentralized finance, is a set of financial services such as trading and …
• Gas fee
  A gas fee is the payment you make to have a transaction processed on a blockchain such as …
• dApp
  A dApp, or decentralized application, is an app whose back end runs on smart contracts ins…

Guides that explain more

• What Is Blockchain?
• What Is DeFi (Decentralized Finance)?
• Bitcoin vs Ethereum: Key Differences Explained

Educational content only, not financial advice.