BlockchainIntermediate#Tech#Automation
Smart Contract
S
Definition
A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
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Concept Diagram
Key Takeaways
1
Smart contracts are self-executing agreements written in code that run on the blockchain
2
They follow the code is law principle - executing automatically when conditions are met
3
They remove the need for trusted intermediaries like lawyers or banks
4
Power DeFi lending, NFT marketplaces, and DAO governance
Practical Example
A DeFi lending smart contract automatically liquidates your collateral if your loan-to-value ratio exceeds 80% - no human involvement, no phone calls, pure code execution on-chain.
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Related Terms
Blockchain
dApp (Decentralized Application)An application built on a decentralized network that combines a smart contract and a frontend user interface.
Blockchain
ERC-20The technical standard used for all smart contracts on the Ethereum blockchain for fungible token implementation.
Blockchain
EVM (Ethereum Virtual Machine)The software platform that developers use to create decentralized applications and execute smart contracts on the Ethereum network.
Blockchain
OracleA data feed that connects non-blockchain data (e.g., asset prices, weather) to smart contracts for execution.
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