What is a Smart Contract in Layman’s Terms (What does a Smart Contract Refer to)

A smart contract, in simple terms, is a program that allows the execution of agreements. It does not rely on someone to specify its rules or contracts, but is automatically executed, controlled, or terminated by specific individuals according to the instructions, without the need for external participants to intervene.

In essence, it establishes a people-oriented mechanism on the blockchain, which anyone can create and utilize to implement their own business logic and transactional behavior. Therefore, in order to provide a secure, reliable, and scalable application environment for themselves, developers can build and run these applications through programming.

What does a Smart Contract Refer to

A smart contract is a new technology used to implement blockchain applications, ensuring their authenticity by storing data on the chain. This technology can be understood as a program that is used to execute complex business processes, protocols, operations, and create various financial products and services. Specifically, smart contracts allow users to set or change account balances based on specific conditions; for example, when someone wants to transfer funds to a specified address, they need to make the payment using that address. If an address does not provide these services, the smart contract will automatically terminate.