Smart contracts are self-executing digital agreements built on blockchain technology, eliminating the need for traditional intermediaries. They power decentralized exchanges (DEXs), lending protocols, and NFT transactions by ensuring secure, trustless execution. Ethereum’s ERC-20 and ERC-721 standards, alongside Solana’s SPL tokens and Binance Smart Chain (BSC) contracts, provide flexibility for blockchain developers. Users rely on smart contract auditing, formal verification, and gas-efficient execution to mitigate vulnerabilities. The rise of programmable money, conditional payments, and smart legal contracts expands blockchain’s role in financial services.
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