Smart Contract
Self-executing code on the Ethereum blockchain that automatically enforces agreement terms when conditions are met.
What is Smart Contract?
A smart contract is a self-executing program stored on the Ethereum blockchain, written in languages like Solidity. It automatically executes predefined actions when specific conditions are met, without intermediaries. Smart contracts power decentralized applications (dApps), enabling functions like token issuance (e.g., ERC-20), NFT creation (e.g., ERC-721), or automated financial agreements in DeFi. They are immutable once deployed, ensuring trustless and transparent execution, with all interactions recorded on the blockchain and requiring gas fees for computation.
Related Terms
Sell Walls
Large accumulations of sell orders at a specific price level, forming a barrier against upward price movement.
Trustlessness
A system property allowing transactions to occur without relying on trust in any single party or intermediary.
SegWit (Segregated Witness)
SegWit (Segregated Witness) is a Bitcoin protocol upgrade that separates signature data from transaction data to increase block capacity and improve transaction malleability.
Testnet
A blockchain network used for testing and development, simulating the main Ethereum network without using real digital assets.
Spot Price
The current market price at which a digital asset can be immediately bought or sold.
Skin in the Game (Prediction Market)
The financial or reputational stake participants commit to in a prediction market, aligning their actions with true beliefs.