Smart Contract
Programmatic rules executed by the blockchain to enforce agreements without intermediaries.
A smart contract is blockchain-enforced logic that defines when funds or state can change. On account-based chains, contracts are programs with persistent state; on UTXO chains, contract rules are usually spending conditions that must evaluate to true.
Smart contracts reduce some counterparty risk, but they introduce code risk, oracle risk, governance risk, and upgrade-key risk. Audits, formal verification, time locks, multi-sig controls, and limited permissions can reduce but not eliminate these risks.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Opcode
→A fundamental element of Bitcoin's scripting language that enables complex transactions.
P2SH
→A script type where the output is locked to the hash of a redeem script, enabling features like multi-sig.
Ethereum Virtual Machine (EVM)
→The EVM is the deterministic runtime that executes smart contract bytecode on Ethereum and EVM-compatible networks.
Covenant
→A script technique that restricts how coins can be spent in the future, enforcing policies at the UTXO level.
All terms and definitions may update as the Cryptionary improves.
