Smart Contract

Program that automatically runs on a blockchain to fulfill agreements without intermediaries.

What is it? - Dummies

Un Smart Contract It's like a digital machine that automatically executes rules. You tell him what has to happen (for example: “if you pay me, I'll send you the product”) and he fulfills the contract without anyone having to intervene. It's on the blockchain, so it can't be modified and everyone can see how it works.

What is it? - PRO

Un Smart Contract (smart contract) is a self-executing computer program deployed on a blockchain, designed for automate agreements and operations between parties without the need for intermediaries. Its logic is defined in code and is executed in a way deterministic, transparent, immutable and verifiable by all network nodes, ensuring that exactly what is programmed is carried out under pre-established conditions.

By residing on the blockchain, the smart contract:

  • If Deploy publicly through a transaction.
  • If Run automatically when the established conditions are met.
  • It cannot be modified once in production (unless it has upgrade logic).
  • Manage digital assets, such as tokens, NFTs, or decentralized identities.

Its architecture is based on specific languages such as Solidity (EVM), Rust (Solana, NEAR) or Move (Aptos, Sui). It is integrated through public functions (mint (), transfer (), vote (), etc.) that interact with users or with other contracts.

Smart contracts allow you to build DApps (decentralized applications) such as DeFi protocols, DAOs, NFT marketplaces, voting systems, digital identities, asset tokenization and much more. They are the core component of Web3, by enabling programmed trust between parties that do not know each other, without relying on banks, notaries or centralized servers.

However, since they are immutable, errors in your code can have irreversible consequences, so its development must include auditing, unit testing, access control, error management and secure governance.

Key points

  • It's a program that lives on a blockchain and executes rules without human intervention
  • It allows you to automate agreements, payments and business logic
  • It is transparent, immutable, verifiable and decentralized
  • Interact with users, other contracts and digital assets
  • Base of dApps, DeFi, NFT, DAOs, tokenization and Web3 in general
  • Advantages

  • Eliminate middlemen, reducing costs and execution times
  • Guarantees trust Between parts that are not known
  • Automate complex processes in a secure and traceable way
  • High availability: it is always online as long as the blockchain is active
  • Interoperability: can connect to other contracts, protocols and external systems via oracles
  • Disadvantages

  • Immutable code: Uncorrected errors can be fatal
  • Vulnerability risk if it is not audited properly
  • Technical learning curve to design and deploy them
  • Gas costs associated with their use, especially in congested blockchains
  • Limitations for interacting with the outside world without oracles
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