crypto-web3intermediateunit-11

Smart Contract

Definition

Code on a blockchain that automatically executes rules or transactions.

In Plain English

A smart contract is like a vending machine: if the right input arrives, it performs the programmed action.

Real-World Example

A DeFi lending app uses smart contracts to manage deposits and withdrawals.

Why It Matters for Your Work

Smart contract bugs can cause irreversible financial losses.

Common Mistake

Assuming "smart" means legally complete or safe. It is still code.

Related Terms

Wallet

A tool that lets someone hold and use crypto assets by controlling private keys.

Gas

A transaction fee paid to run operations on a blockchain.

DAO

Decentralized autonomous organization: a group that uses blockchain-based rules or voting to coordinate decisions.