Glossary1 min read

Smart contract

Code and state at a blockchain address that execute according to network rules when called.

On this page

Definition

A smart contract is program code and data stored at a blockchain address. Transactions call its functions, and nodes execute the result under shared rules.

Simple example

An exchange contract can accept one token and calculate how much of another token a pool will return.

Often confused with

“Smart” does not mean the code understands the parties’ intent, and “contract” does not by itself establish a legal agreement in every jurisdiction.

Source

See something wrong? Brokzi logs material changes. Prepare a correction note.

About the byline

Brokzi Editorial

The accountable byline for Brokzi’s explainers, definitions, news notes, and corrections.

Editorial responsibility →