What Is a Smart Contract? (The Backbone of Web3)

Smart contracts are one of the biggest innovations in blockchain. They let you automate agreements and transactions, without needing a middleman.

🤖 What Is a Smart Contract?

A smart contract is code stored on a blockchain that runs automatically when certain conditions are met.

For example:

• If Alice sends ETH, then Bob gets access to a file.
• If a lending condition is met, interest is paid back.

No trust, lawyer, or company needed — just code.

🛠️ How Smart Contracts Work

Smart contracts live on blockchains like Ethereum or Solana.

They can:

• Move funds between wallets
• Trigger other contracts
• Power DeFi apps, games, DAOs, and NFTs

🔒 Benefits

• Trustless execution — no one can cheat
• Transparent and verifiable
• Always available (24/7, globally)

⚠️ Risks

• Bugs in code can’t be reversed
• Poor design can be exploited
• Some contracts may be centralized under the hood

✅ TL;DR

• Smart contracts are programs on the blockchain
• They automate rules, agreements, and logic
• They're the foundation of Web3, DeFi, and NFTs