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Crypto
Smart Contract
Self-executing code on a blockchain that automatically carries out an agreement when conditions are met.
Smart contracts run on platforms like Ethereum. They are transparent and cannot be changed once deployed, but bugs in the code can be expensive. They power most of DeFi, NFTs, and decentralised applications.
It's a vending machine for agreements — put in the right inputs and it automatically delivers the output without needing a middleman.
Real world: In DeFi, a smart contract automatically pays interest to lenders every day. In NFTs, it automatically sends royalties to the original artist every time the artwork is resold.
💡 Smart contracts remove the need to trust people — the code does what it promises automatically.