Smart Contract

A smart contract refers to a self-executing code or protocol verified on the blockchain, which executes a predefined set of instructions. These contracts are characterized by their trustlessness, autonomy, decentralization, and transparency. Once deployed, smart contracts are irreversible and unmodifiable. While they find utility across various domains, they are particularly popular in financial contracts, such as loans and derivatives, as well as identity management and other applications. Smart contracts are widely used in decentralized finance (DeFi) and can be bundled into decentralized applications (dApps) to enable more complex functionalities.