A smart contract is a program deployed on a blockchain. It executes exactly as written when its conditions are met, without needing anyone's approval and without the option of being talked out of it.
That is the strength and the danger in one sentence. There is no clerk to catch an obvious mistake and no manager to reverse one, so a flaw in the code is a flaw in the outcome. Most tokens are contracts, which is why a token is only as sound as the code behind it - and why "the transaction went through" and "the transaction did what you intended" are separate claims.
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/smart-contract
Trading crypto from Dubai since 2019.
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