A smart contract is a self-executing contract with terms directly written into code. It automatically executes when predetermined conditions are met, without requiring intermediaries.
Key characteristics:
Immutable: Once deployed, code cannot be changed (unless designed with upgradability)
Deterministic: Same input always produces same output
Autonomous: Executes automatically when conditions are met
Transparent: Code is publicly visible on the blockchain
Example use case: An escrow contract that automatically releases funds when both parties confirm completion of a service.
Rewriting in plainer words…
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