A smart contract, like any contract, establishes the terms of an agreement. But unlike a traditional contract, a smart contract’s terms are executed as code running on a blockchain like Ethereum. Smart contracts allow developers to build apps that take advantage of blockchain security, reliability, and accessibility while offering sophisticated peer-to-peer functionality — everything from loans and insurance to logistics and gaming.
And because they run on a blockchain, they offer security, reliability, and borderless accessibility. Once deployed onto a blockchain, smart contracts generally can’t be altered, even by their creator. This helps ensure that they can’t be censored or shut down.