Smart Contract

A smart contract is a self-executing agreement written in code on a blockchain—a digital ledger that records transactions. When certain conditions are met, the contract automatically carries out its terms without needing a middleman like a lawyer or bank. You'll encounter smart contracts in crypto projects, decentralized finance (lending and borrowing platforms), and NFT (digital collectible) transactions. They matter because they can reduce costs and speed things up, though they're only as good as the code written. For example, a smart contract might automatically transfer tokens from one person to another once a payment is confirmed, all without human intervention.