# Smart Contract

> A program that runs on a blockchain and does what it says, automatically.

Canonical URL: https://fudfomo.co/glossary/smart-contract
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A smart contract is a small program stored on a blockchain. It runs exactly as written and the result is recorded on chain, so nobody can quietly change the outcome.

Smart contracts are what power things like stablecoins, lending apps, exchanges, and NFTs. The trade-off is that bugs in the code can lock up or drain funds, and there is no helpdesk to call.

## Related terms

- [Ethereum](https://fudfomo.co/glossary/ethereum): A blockchain that lets developers build apps and issue tokens. Often called a programmable money platform.
- [DeFi](https://fudfomo.co/glossary/defi): Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.
- [Token](https://fudfomo.co/glossary/token): A unit of value created on top of an existing blockchain like Ethereum.
- [Oracle](https://fudfomo.co/glossary/oracle): A service that brings outside information, like prices or sports scores, onto a blockchain.

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