Lesson 3
What is a Smart Contract?
Self-executing contracts on the blockchain
A smart contract is a program stored on the blockchain that executes automatically when certain conditions are met. It works like a vending machine: you insert coins, the contract delivers its part.
Advantages: they are transparent (anyone can audit the code), immutable (nobody can change them afterwards) and require no trust in third parties.
Smart contracts are the foundation of DeFi, NFTs and many other blockchain applications.