smart contract
Self-executing computer code that automatically enforces agreements on blockchain networks.
A smart contract is a program stored on a blockchain that automatically executes actions when predetermined conditions are met, without requiring intermediaries. Instead of relying on lawyers or banks to enforce an agreement, the code itself does the enforcement—if condition A happens, then action B automatically occurs.
Smart contracts exist because blockchains can run code in a transparent, tamper-proof way. When you see smart contracts mentioned in news, it often relates to cryptocurrency transactions, financial agreements, or decentralized applications. The key takeaway is that these contracts remove the need for trusted third parties to oversee deals, though the code itself must be written correctly—bugs or flaws can lead to unintended consequences or losses.
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Written once as a plain-English reference, not as advice. Nothing here is a recommendation to buy or sell anything.