The potential of smart contracts has been apparent since the launch of Ethereum. They aim to be secure, tamper-proof, and self-executing, which gives tremendous advantages in speed and cost over traditional financial contracts. For many people, smart contracts are the most revolutionary innovation to come from blockchain technology.
Smart contracts form the foundational logic that underpins decentralized applications (dApps) running autonomously on public ledgers. The use cases for these lines of code are practically limitless, ranging from defining how and when rewards are distributed in a Web3 game to the logic that guarantees the seizure of collateral if a loan is not repaid.
Smart contracts have applications in the majority of today’s biggest industries including retail, real estate, education, healthcare, and transportation industries. Just how traditional finance touches every industry, so too will decentralized finance (DeFi) and smart contracts.