Smart Contract

Program running automatically on blockchain by predefined rules.

Smart contract: code on blockchain that executes when conditions met. No intermediary, no trust, no reversal. First impl: Ethereum (Solidity, 2015). Enabled DeFi, NFTs, DAOs. Risk: bug = funds lost (100+ hacks $100M+ each).

In plain words

A program stored on the blockchain that runs itself when conditions are met. There is no intermediary and no reversal. Smart contracts power DeFi (lending, swaps), NFTs and DAOs. Risk: one bug equals all funds lost. Third-party audits are mandatory.

Example

Uniswap V3: contract managing ~$5B liquidity without humans. Aave: lending contract with $12B TVL. ENS: registers .eth names. Hacks: Ronin (2022, $624M), Wormhole (2022, $320M).

Also known as: smart contract, kontrakt

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