Do not necessarily need a blockchain to run; however, due to the security benefits that blockchain technology provides, blockchain has become a standard decentralized execution platform for smart contracts.
A smart contract usually contains some business logic and a limited amount of data.
Self-Executing Code That’s Transforming Business (Part 2)
Actors or participants in the blockchain use these smart contracts, or they run autonomously on behalf of the network participants.
More information on smart contracts will be provided in , Smart Contracts.
Smart contracts A smart contract is a decentralized program. Smart contracts do not necessarily need a blockchain to run; however, due to the security benefits that blockchain technology provides, blockchain has become a standard decentralized execution platform for smart contracts. A smart contract usually contains some business logic and a limited amount of data. The business logic is executed if specific criteria are met. Actors or participants in the blockchain use these smart contracts, or they run autonomously on behalf of the network participants. More information on smart contracts will be provided in , Smart Contracts.
Why This Matters for Blockchain Technology
Understanding Smart contracts is not just an academic exercise — it has real-world implications for how blockchain systems are designed, deployed, and secured. Whether you are a developer building decentralized applications, a business leader evaluating blockchain adoption, or a curious learner exploring the technology, this knowledge provides a critical foundation.
Key Points to Remember
- Smart contracts do not necessarily need a blockchain to run; however, due to the security benefits that blockchain technology provides, blockchain has become a standard decentralized execution platform for smart contracts.
- A smart contract usually contains some business logic and a limited amount of data.
- Actors or participants in the blockchain use these smart contracts, or they run autonomously on behalf of the network participants.
- More information on smart contracts will be provided in , Smart Contracts.
Conclusion
Smart contracts represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.