smart contract

Syllable breakdown

Dictionary meaning

a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met, without the need for a trusted intermediary; the concept was proposed by computer scientist Nick Szabo in 1994 and became practically implementable with the launch of the Ethereum blockchain in 2015; smart contracts underpin decentralised finance protocols, non-fungible token standards, decentralised autonomous organisations, and blockchain-based supply chain and identity verification applications; their immutability means that bugs in smart contract code can result in permanent, irreversible loss of funds