Smart contract is a program deployed on a blockchain or its execution environment that performs predefined logic when it receives appropriate inputs.

Instead of relying on a single centralized server, execution follows the rules of the blockchain network. The resulting state changes can become part of the distributed ledger and be independently verified by network participants.

What smart contracts can do

  • transfer or lock digital assets;
  • issue and manage tokens;
  • enforce conditions for operations;
  • interact with other contracts;
  • implement decentralized application logic.

Calling a smart contract is commonly performed through a transaction. Users may pay network resources according to the blockchain fee model. Bugs in contract code can produce unintended results, so important contracts may undergo audits and additional verification.