Definition
A smart contract is a self-executing program stored on a blockchain that automatically enforces predefined rules and conditions. It acts as a digital agreement between parties, with the terms written directly in code. Once deployed, a smart contract runs exactly as programmed on the network, without needing a central authority or manual intervention to oversee its logic.
In Simple Terms
A smart contract is like a digital agreement written in computer code and saved on a blockchain. When the conditions in the code are met, the contract carries out its programmed actions automatically. No one has to approve or trigger it manually, because the blockchain network runs the contract as it is written.
Context and Usage
The term smart contract is commonly used when discussing decentralized applications, token systems, and on-chain agreements in blockchain ecosystems. It appears in conversations about how blockchain networks handle logic, permissions, and interactions between accounts. Smart contracts are a core component of many public blockchains and are central to discussions about programmable, trust-minimized systems.