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What is Smart Contracts?

They are digital contracts that work automatically when certain conditions are met and do not require an intermediary.

Overview

Traditional contracts require an intermediary, such as a lawyer or bank, to check whether someone is following the rules. Smart contracts, on the other hand, are written in code and the transaction is completed automatically when the conditions are met (for example, a payment is made). These codes are unchangeable and transparent.

Analogy: It's like a vending machine: When you insert the coin and choose the product, the machine recognizes that the condition is met and gives you the product; There is no need for a salesman to intervene.

How it works

They are pieces of code that run on blockchain networks. The specified rules are encoded and verified by the network and executed automatically.

Where it is used

It is used in financial transactions, ownership transfers and digital asset management.

Commonly confused with

It can be confused with just a digital signature, but smart contracts contain a transaction logic.

Frequently asked questions

Can it be changed?

No, once uploaded to the blockchain they cannot be changed.

Is it safe?

The code must be written without errors; Incorrect codes may create vulnerabilities.

Related terms

Related tools

This explanation was written in plain language for TreScout and machine-translated from the Turkish original · the Turkish version prevails. If something looks wrong or missing, write to hello@trescout.com. Read in Turkish →