Smart Contract

A smart contract is a self-executing agreement written in code on a blockchain—a digital ledger that records transactions. When certain conditions are met, the contract automatically carries out its terms without needing a middleman like a lawyer or bank. You'll encounter smart contracts in crypto projects, decentralized finance (DeFi) apps, and NFT platforms. They matter because they can reduce costs and speed up transactions, though they're only as reliable as the code written. For example, a smart contract might automatically transfer tokens from Alice to Bob once Bob delivers proof of payment, all without human intervention.