noun

smart contract

smahrt KON-trakt

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Smart contract (noun) means a program stored on a blockchain that carries out the terms of an agreement — releasing funds, transferring ownership — when it is called and its conditions are met. It does not run by itself: someone or something has to send a transaction that triggers it. Example: “The smart contract releases the deposit as soon as both signatures are in.”

noun

A program stored on a blockchain that carries out the terms of an agreement — releasing funds, transferring ownership — when it is called and its conditions are met. It does not run by itself: someone or something has to send a transaction that triggers it.

"The smart contract releases the deposit as soon as both signatures are in."

"A flaw in the smart contract let an attacker withdraw funds twice."

How to use smart contract

Learner’s notes

In plain EnglishA small program on a blockchain that does something automatically when the agreed conditions are met.

When to use it

A term of art. It is neither necessarily smart nor a contract in the legal sense, and lawyers often point this out.

Memory tip

"Automatic" is misleading. A smart contract only runs when a transaction calls it; it cannot watch the world and act on its own, and it cannot see anything outside the blockchain without an oracle feeding data in.

Trace the full origin ↓

Easily confused with

legal contract dApp protocol → escrow →

Common pairings

deploy a smart contract smart contract audit smart contract address interact with a smart contract smart contract bug

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C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

Test yourself on “smart contract” A quick quiz — meaning, synonyms & usage →

Fill the gap

Can you complete this real example?

The _____ releases the deposit as soon as both signatures are in.

Etymology

Coined by the American computer scientist Nick Szabo in 1996.

Synonyms

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on-chain program chaincode automated agreement protocol contract

Related words

chaincode

Rhymes for smart contract

contract

See all rhymes for smart contract →

Frequently asked questions

Is a smart contract a legal contract?

Not automatically. It is code that carries out steps when conditions are met; whether it also creates enforceable legal obligations depends on the law of the relevant country and on what the parties actually agreed. Some jurisdictions have started to address the question directly, but the two are separate ideas.

What happens if a smart contract has a bug?

Because the code runs exactly as written and typically cannot be changed after deployment, bugs can cause funds to be locked or drained, and transactions are generally not reversible. This is why projects commission audits before deploying, though audits do not guarantee the code is free of faults.

What is the difference between a smart contract and a dApp?

A smart contract is the program running on the blockchain. A dApp, or decentralised application, is the whole product, usually a website or app that gives people a friendly way to interact with one or more smart contracts underneath.

What is the meaning of smart contract?

"smart contract" (noun) means a program stored on a blockchain that carries out the terms of an agreement — releasing funds, transferring ownership — when it is called and its conditions are met. It does not run by itself: someone or something has to send a transaction that triggers it.

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