Smart Contracts: The Backbone of Ethereum

A smart contract is code that lives on the blockchain and executes automatically. Once deployed, it cannot be altered, making it transparent and predictable.

These contracts power decentralized exchanges, lending platforms, and NFT marketplaces. They eliminate the need for banks, brokers, or centralized authorities.

However, smart contracts must be written carefully. Bugs or exploits can lead to irreversible losses, highlighting the importance of security audits.