Smart Contract
Smart contract is a piece of software deployed on a blockchain that automatically executes when predefined conditions are met. Smart contracts do not require intermediaries: if the specified condition is met, the code executes automatically.
Example: “If the buyer transfers 1 ETH → automatically transfer the NFT to their address.”
Smart contracts are the foundation of DeFi, NFTs, DAOs, and most cryptocurrency protocols. They are primarily written in Solidity (Ethereum) or Rust (Solana).
⚠️ Risk
Smart contract code is generally immutable after deployment. Errors and vulnerabilities in the code can result in the irreversible loss of funds. Before interacting with a protocol, check whether it has undergone an independent security audit.