LeoGlossary: Smart Contract

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A smart contract is a self executing agreement between two parties. Both the action of buyer and sellers are determined by the code that is in the contract. There are no external entities that are involved in the transactions.

Smart contracts are tied to blockchains. This are a vital part of Decentralized Finance since there is no need for any third party involvement.

Digital assets are often created via smart contracts. The code is establish to create different synthetic assets and anyone who is on chain can utilize the contract. The contract is what acts as the intermediary providing the "rules" of conduct.

All instructions can be carried out by anonymous parties located anywhere in the world. The code is carried out and all transactions validated by the block producers.

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