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A program stored on a blockchain that runs by itself when its conditions are met, such as releasing funds once a payment arrives.
Crypto Drafted with AI help · Reviewed by Keshav Aggarwal · Updated
In simple words
Think of a vending machine. Put in the right coins, press the button, and the snack drops. Nobody has to approve it.
A smart contract is a vending machine made of code on a blockchain.
The technical side
Smart contracts are code deployed to a blockchain, most often Ethereum, where they hold funds and follow fixed rules. Once deployed, anyone can call them, and the network runs them exactly as written, paid for with gas. Ethereum contracts are mostly written in Solidity.
The idea was described by Nick Szabo in the 1990s. Smart contracts power DeFi, NFTs and token launches; a bug in one can be exploited, which is how many hacks happen.
Smart Contract kya hai?
Smart contract blockchain pe chalne wala code hai jo shart poori hote hi apne aap kaam kar deta hai, jaise vending machine.
Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.
Related terms
- BlockchainCryptoA shared record of transactions, copied across many computers, where each new block of entries is linked to the one before it.
- DeFi (Decentralised Finance)CryptoFinancial services such as lending, borrowing and trading that run on blockchain smart contracts instead of through a bank or broker.
- Gas FeeCryptoThe fee paid to a blockchain network to process a transaction or run a smart contract, best known on Ethereum.