Smart Contract
A smart contract is a self-executing program deployed on Ethereum that runs deterministically when called. #Ethereum #ETH #VirtualEthereumIndex
A smart contract is a self-executing program deployed on Ethereum that runs deterministically when called. Smart contracts can manage assets (tokens), enforce rules (lending terms), and coordinate actions (auctions, payroll, governance) without relying on a central intermediary. In web3, smart contracts are the foundation of DeFi protocols, NFT marketplaces, and tokenized RWA platforms. The key advantage is composability: one contract can interact with another, creating “money legos” that accelerate innovation. The key risk is that bugs are exploitable, because code is public and value is on the line–so audits, formal verification, and conservative design matter. For mainstream adoption, smart contracts enable automated settlement and programmability that TradFi systems often achieve only through multiple intermediaries. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary