Back to glossary

Smart contract

A smart contract is a self-executing contract between buyer and seller being directly written into lines of code on a blockchain, which provides a secure and transparent way to record and verify the execution of the contract. It enables the automation of a wide variety of processes, including management of assets, implementation of decentralized autonomous organizations (DAOs), and creation of decentralized applications (DApps).

Smart contracts are considered a key innovation in blockchain technology as they allow for the creation of trustless and decentralized systems, while also reducing the need for intermediaries and legal paperwork. They have a wide range of potential use cases including digital identity, voting systems, supply chain management, and more.