What is Smart Contract?
Self-executing code on a blockchain that automatically enforces agreement terms.
Smart Contract Explained
A smart contract is a program stored on a blockchain that automatically executes when predetermined conditions are met. Smart contracts enable trustless transactions without intermediaries, powering everything from token swaps to complex DeFi protocols. Once deployed, smart contracts cannot be modified (unless designed with upgrade mechanisms), making them immutable and censorship-resistant.
Key Characteristics
- Self-executing and trustless
- Immutable once deployed
- Eliminates need for intermediaries
- Powers all DeFi protocols
Real-World Example
The Floops staking contract automatically calculates your rewards based on your stake, the total pool size, and time elapsed—no human intervention required.
Related Terms
Frequently Asked Questions
What does Smart Contract mean?
Self-executing code on a blockchain that automatically enforces agreement terms.
How does Smart Contract work in DeFi?
A smart contract is a program stored on a blockchain that automatically executes when predetermined conditions are met. Smart contracts enable trustless transactions without intermediaries, powering everything from token swaps to complex DeFi protocols. Once deployed, smart contracts cannot be modified (unless designed with upgrade mechanisms), making them immutable and censorship-resistant.
Can you give an example of Smart Contract?
The Floops staking contract automatically calculates your rewards based on your stake, the total pool size, and time elapsed—no human intervention required.
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