What is a Smart Contract?
A smart contract is a computer program or code designed to facilitate, verify, or enforce the negotiation or performance of a contract without the need for intermediaries. It operates on blockchain technology, meaning once deployed, it executes automatically based on predefined conditions.
In the context of cryptocurrencies, particularly in blockchain platforms like Ethereum, smart contracts are widely used to execute transactions and processes without human intervention. For example, if two parties agree on an exchange of goods or services, the smart contract will automatically ensure that both sides fulfill their obligations before completing the transaction.
Smart contracts are immutable, meaning once they are created and stored on the blockchain, they cannot be altered. This ensures a high level of security and trust, as the terms of the contract cannot be changed or tampered with after deployment.
Use cases for smart contracts include decentralized finance (DeFi) applications, token creation, and various automated services where transparency and trust are essential.
