What is a crypto smart contract?

What Is a Crypto Smart Contract?

A smart contract is code that runs on a blockchain. When conditions are met (e.g. you send ETH and call "swap"), the contract executes the logic (e.g. send you tokens). No one can change the code once it is deployed; it runs as written. Smart contracts power DeFi apps, token transfers, NFTs, and more.

How It Works

Developers write the contract and deploy it to a chain. Users interact with it by sending transactions (e.g. "approve" and "swap"). The network runs the code and updates state (e.g. balances). You pay gas fees for the computation. Contracts can hold funds and interact with other contracts.

Risks

Bugs or design flaws can be exploited. If you send funds to a contract, you rely on its code. Use well-audited, widely used protocols. Never approve unlimited spending or sign messages you do not understand.