Smart Contract
Self-executing code stored on a blockchain that automatically enforces agreed rules when predefined conditions are met.
Definition
A smart contract is a program deployed to a blockchain that runs exactly as written, holding and moving funds according to its code without an intermediary. In gambling it can define bet rules, escrow deposits and pay winners automatically. Its strengths, transparency and automation, are also its risks: contracts are typically immutable once deployed, so bugs, logic errors or exploits can cause permanent, unrecoverable losses, and users generally have no customer-support recourse. A smart contract executes its logic faithfully but cannot guarantee that the logic is fair, safe or legal.
Worked example
A betting smart contract might hold both players' stakes in escrow and automatically release the pot to whoever the contract's logic, fed by an oracle, determines won.
Why it matters
Central to understanding automated, trust-minimised gambling; professionals must assess audit status, upgradeability and exploit history before relying on one.