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What is a smart contract

A smart contract is a program that automatically executes predefined rules on a blockchain.

Smart contracts allow transactions and agreements to be executed without intermediaries. They are widely used in the DeFi ecosystem and other blockchain applications.

Smart contracts are written in programming languages such as Solidity, Rust, or Move and deployed to a blockchain network.

How smart contracts work​

A smart contract is deployed to the blockchain and automatically executes when certain conditions are met.

Examples include:

  • sending payments
  • executing financial agreements
  • exchanging tokens

Because smart contracts run on blockchain networks, their execution is transparent and verifiable.

To create a new token, a developer deploys a smart contract that defines the token’s name, supply, and functionality.

Once the smart contract is deployed, the token can be issued, transferred, burned, or managed according to the contract’s logic.

Where smart contracts are used​

Smart contracts are commonly used in:

  • DeFi applications
  • NFT platforms
  • decentralized exchanges
  • DAO governance systems

Advantages of smart contracts​

  • automatic execution of rules
  • removal of intermediaries
  • transparency and verifiability

FAQ​

Who invented smart contracts?​

The concept of smart contracts was proposed by computer scientist Nick Szabo in the 1990s.

Which blockchain supports smart contracts?​

Ethereum is the most widely known smart contract platform, although many other blockchains also support them.

Can a smart contract be modified?​

Usually not. Once deployed on the blockchain, the code typically cannot be changed.