Digital assets
Smart contract
Code deployed on a blockchain that executes automatically when its conditions are met.
How it works
Smart contracts remove the need for an intermediary to enforce an agreement, since the rules run as written and cannot be selectively applied.
That is also the risk: the code is the agreement, including its bugs, and deployed contracts are frequently immutable.
Where it misleads people
Very large sums have been lost to smart contract vulnerabilities. Audits reduce the risk and do not remove it.
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