Smart Contract
A program stored on a blockchain that runs automatically when its conditions are met, without an intermediary holding the assets.
Also called smart contracts
A program stored on a blockchain that runs automatically when its conditions are met, without an intermediary holding the assets.
Why it matters
The code executes exactly as written, including its bugs. Most large DeFi losses have been contract flaws rather than market moves.
Related terms
Keep reading
Ethereum
A blockchain designed to run programs — smart contracts — as well as move…
Liquidity Pool
A pot of two or more tokens locked in a contract that traders swap…
Gas Fee
The payment for the computation a blockchain transaction consumes, paid in the network's own…
Node
A computer that keeps a copy of a blockchain and checks new transactions against…
DeFi
Financial services — lending, trading, derivatives — built from smart contracts rather than intermediaries,…
Exchange
A venue for trading assets. A centralised exchange holds customer funds and matches orders…