Definition
A smart contract is program logic deployed to a blockchain or blockchain-compatible execution environment. Users and applications call contract functions through transactions.
Typical uses
- Token issuance and transfers.
- Decentralized exchanges.
- Lending and collateral.
- Governance.
- Escrow.
- NFTs and digital ownership.
- Automated business rules.
Important constraints
Smart contracts can contain bugs, permissions, upgrade mechanisms, and economic assumptions. Code execution does not automatically make a system safe or trustless.
Do not interact with a contract solely because its source code is public. Review permissions, deployment details, upgrade controls, and transaction effects.
