What Is a Smart Contract and How Does It Work?

A smart contract is self-executing code on a blockchain. Learn how smart contracts work, their main uses and key benefits. A smart contract is computer code stored and executed on a blockchain that automatically enforces the terms of an agreement. The contract runs when preset conditions are met, enabling secure, tamper-resistant transactions without human intervention. Smart contracts are a core innovation of blockchain technology, allowing agreements to be automated, transparent and secure. Understanding how smart contracts work helps users and businesses unlock new efficiencies and reduce reliance on intermediaries.