Technology · Beginner lesson · about 2 minutes
Smart contracts
Programs that can control on-chain assets under code-defined rules.
The short answer
A smart contract can hold assets and execute instructions on a blockchain. It cannot understand intent, fix a bad design, or prove that the surrounding product is honest.
In plain English
A smart contract can hold assets and execute instructions on a blockchain. It cannot understand intent, fix a bad design, or prove that the surrounding product is honest.
The details differ by network and service, so use the linked sources and the project’s own documentation when a decision depends on current behavior.
What can go wrong
Read this before you act.
Bugs, upgrade keys, malicious approvals, oracle failures, and copied contracts can move or lock assets.
Check your understanding
A few questions. Not a test.
Pick an answer to see why it's right or wrong. There's no score to unlock.
Sources and corrections
This lesson is a starting point. The two sites below are good general places to learn more. Please tell us if something needs fixing.