Smart contract

A smart contract is a computer program running on a blockchain that automatically executes specific actions based on predefined conditions. This eliminates the need for intermediaries, making transactions secure and transparent. For example, a smart contract can automatically release payment when certain conditions are met, such as product delivery or achieving a specific milestone.

Smart contracts are used in various industries, from finance (e.g., decentralized exchanges and lending) to supply chain management and gaming. Once deployed on the blockchain, a smart contract cannot be altered, ensuring reliability but also requiring careful design to prevent potential errors.