Lesson 1: What is a Smart Contract?

Crypto World - Intermediate Level

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What is a Smart Contract?

A smart contract is a piece of code that lives on the blockchain and automatically executes when specific conditions are met.

        Think of it like: a digital vending machine. Insert funds → Automatically get what you paid for. No middleman needed.
      

How It Works

Written in code (usually Solidity for Ethereum)
Deployed to the blockchain
Executed by users or other contracts
Immutable and transparent once deployed

Smart Contract Flow Diagram

Use Cases

Creating tokens (like $FOFI)
Building dApps (decentralized apps)
Managing DeFi protocols
Automating NFT marketplaces
Governance (voting in DAOs)

Benefits

Trustless: No need for intermediaries
Secure: Runs exactly as programmed
Transparent: Anyone can read the code
Efficient: Reduces human error and delays

Risks to Know

Code bugs can’t be easily fixed once deployed
Poorly written contracts can be exploited
No refunds or chargebacks

Next: We explore NFTs – what they are, how they work, and why they’re changing digital ownership.

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