Technology · Beginner lesson · about 6 minutes

Smart contracts

Programs that can control on-chain assets under code-defined rules.

TRUST SNAPSHOTSource strength 3 / 5Risk coverage 5 / 5Check dates before relying on detailsHow this is scored →

The short answer

A smart contract can hold assets and execute instructions on a blockchain. It cannot understand intent, fix a bad design, or prove that the surrounding product is honest.

In plain English

A smart contract can hold assets and execute instructions on a blockchain. It cannot understand intent, fix a bad design, or prove that the surrounding product is honest.

This lesson belongs to the technology cluster. The details differ by network and service, so use the linked sources and the project’s own documentation when a decision depends on current behavior.

What can go wrong

Read this before you act.

Bugs, upgrade keys, malicious approvals, oracle failures, and copied contracts can move or lock assets.

Check your understanding

A few questions. Not a test.

Choose an answer to see why it is right or wrong. Nothing is locked behind a score.

1. What is the safer next step?

Lesson complete?

Next up

Verify the contract address and network, inspect the approval, and test with an amount you can lose.

See related lessons in this cluster and keep going without a dead end.

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Sources and corrections

This lesson is a starting point. When details matter, read the official pages we link below, and tell us if something needs a correction.