Smart Contracts Explained: How Self-Executing Blockchain Programs Work
By
Neill Velardo
Summary
Smart contracts are self-executing programs stored on a blockchain that automatically run when predefined conditions are met. They power decentralized finance (DeFi) applications like lending protocols (Aave), token swaps (Uniswap), and NFT minting on blockchains like Ethereum and Solana. The article explains how smart contracts work, their key characteristics (deterministic, immutable, transparent), and where they run, including on Bitcoin. Smart contracts eliminate intermediaries by automating trust through code, making them foundational to the crypto ecosystem.
Source
bskySmart Contracts Explained: How Self-Executing Blockchain Programs Workbitcoin.comKey quotes
· 3 pulledSmart contracts are programs stored on a blockchain that automatically execute a set of instructions when predefined conditions are met.
When you swap one token for another on a decentralized exchange, no human approves the trade. No bank holds your funds in between.
They power most of what people actually do with crypto today, from lending billions of dollars on protocols like Aave, to swapping tokens on Uniswap, to minting NFTs on Ethereum and Solana.
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