Smart contract

A smart contract is a kind of digital contract in a blockchain that executes itself. These contracts are very reliable because they are independent and decentralized. Because smart contracts are in a blockchain, they can also be properly checked by everyone. Smart contracts are irreversible and cannot be modified once deployed. The most popular use cases for smart contracts are financial contracts such as loans. In DeFi, smart contracts can be combined with dApps to perform more complex functions.

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Cryptopedia: Smart contract