Smart Contract

A smart contract is a programmable contract that automatically executes when specific conditions are met. It is based on blockchain technology and is often used in the Web3 environment to enable trustless and transparent transactions.

Smart contracts operate with predefined rules embedded in their code. Once these rules are met, the contract automatically executes the corresponding actions, such as transferring cryptocurrencies or releasing a digital asset.

Example: A digital marketplace uses smart contracts to process the purchase of NFTs. Once a buyer pays the specified amount, the NFT is automatically transferred to their wallet—without the need for intermediaries.

A major advantage of smart contracts is their reliability. Since they are stored on a blockchain, they are tamper-proof and transparent. They reduce reliance on intermediaries, saving both time and costs.

Smart contracts form the backbone of many Web3 applications. They are used in areas such as DeFi, supply chain management, and digital identities. Their ability to automate processes while ensuring trust makes them a key element of the decentralized digital economy.