Smart Contract
Definition
A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met. First conceptualized by Nick Szabo in 1994, they became practical with Ethereum's launch. Smart contracts eliminate the need for trusted intermediaries, reduce costs, and increase transparency. They power DeFi protocols, NFT marketplaces, DAOs, and countless other blockchain applications.
Why Does This Matter?
Understanding Smart Contract is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Smart Contract feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.
Related Terms
Ethereum is a decentralized blockchain platform that enables smart contracts and...
DeFi refers to financial services built on blockchain technology that operate wi...
A DAO is an organization governed by smart contracts and token holder votes rath...