Overview
A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement. Once deployed, it runs autonomously without intermediaries, triggering predefined actions based on specific conditions.
Key Characteristics
- Immutable: Cannot be changed once deployed
- Deterministic: Executes exactly the same way every time
- Trustless: Eliminates the need for third parties
- Transparent: Code and transactions are publicly verifiable
Common Uses
- Token creation and distribution (ERC-20, ERC-721)
- NFT minting and royalties
- Decentralized finance (DeFi) protocols
- Voting and governance mechanisms
- Automated escrow and payments
Related Context
