What Are Smart Contracts?
The code that runs the blockchain economy, self-executing agreements with no middleman.
Introduction
Smart contracts are self-executing agreements written in code and stored on blockchains. They run automatically when conditions are met—no middlemen, no delays.
How Smart Contracts Work
Code as Agreement: Rules are programmed directly into the blockchain.
Automatic Execution: Once triggered, actions happen instantly and can’t be reversed.
Ethereum Lead: Ethereum pioneered smart contracts, but many blockchains now support them (Solana, Cardano, Polkadot).
Benefits of Smart Contracts
Trustless: No need to rely on third parties.
Transparent: Code is visible and verifiable.
Efficient: Faster and cheaper than traditional contracts.
Secure: Immutable once deployed (though still vulnerable if coded poorly).
Popular Use Cases
DeFi: Lending, borrowing, trading, yield farming.
NFTs: Minting and transferring ownership.
DAOs: Automating governance and voting.
Supply Chains: Tracking goods and payments.
Insurance: Automatic claim payouts.
Risks & Limitations
Code Vulnerabilities: Bugs can be exploited.
Irreversibility: Errors are permanent.
Complexity: Not beginner-friendly to create.
Regulation: Unclear legal frameworks in many regions.
FAQs
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A: No, they’re enforced by code, not people.
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A: Usually no, unless coded with upgrade functions.
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A: Not necessarily, audits and trusted platforms matter.
Smart contracts are the foundation of the blockchain economy, but they’re only as good as the code behind them.
Inside the C3 Vault, you’ll learn how to spot reliable projects, avoid vulnerabilities, and understand how smart contracts drive DeFi and beyond.