What Is Smart Contract? Meaning & Example
Definition
A smart contract is a program stored on a blockchain that runs automatically when set conditions are met. It powers DeFi, NFTs and many other applications.
Related terms
Ethereum is a blockchain platform that runs smart contracts and powers many decentralized applications. Its native coin is used to pay transaction fees.
DeFi (Decentralized Finance)DeFi refers to financial services such as lending, borrowing and trading built on blockchains using smart contracts. It aims to work without traditional intermediaries but carries technical and platform risks.
Gas FeeA gas fee is the cost paid to process a transaction or run a smart contract on certain blockchains. Fees rise when the network is busy.
What is Smart Contract?
A smart contract is a program stored on a blockchain that runs automatically when set conditions are met. It powers DeFi, NFTs and many other applications.
Can you give an example of Smart Contract?
A smart contract can automatically release funds to a seller once a buyer's payment is confirmed.