ACADEMY
MODULE 10
LESSON 1
What Is a Smart Contract?
A smart contract is a piece of code that runs automatically when its conditions are met.
It's like a digital agreement — but written in logic, not legalese.
“If X sends Y tokens to contract Z, release the reward.”
Once deployed, the contract can’t be changed. There’s no middleman, no manual processing, and no need for trust. The contract does what it says — every time.
Smart contracts are typically:
Immutable
Can’t be changed once deployed
Self-executing
Triggered by on-chain events
Transparent
Anyone can read the code
Most blockchains (like Ethereum, Avalanche, and Solana) run these contracts inside a virtual machine (VM).
Users pay gas fees to trigger them, and performance varies based on network congestion.