> For the complete documentation index, see [llms.txt](https://docs.xb3.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xb3.finance/digital-asset-education/basics-and-blockchain/smart-contracts.md).

# Smart Contracts

## Smart Contracts:

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.

A "smart contract" is simply a program that runs on the Ethereum blockchain. It's a collection of code (its functions) and data (its state) that resides at a specific address on the Ethereum blockchain.

Smart contracts are a type of [Ethereum account](https://ethereum.org/en/developers/docs/accounts/). This means they have a balance and can be the target of transactions. However they're not controlled by a user, instead they are deployed to the network and run as programmed. User accounts can then interact with a smart contract by submitting transactions that execute a function defined on the smart contract. Smart contracts can define rules, like a regular contract, and automatically enforce them via the code. Smart contracts cannot be deleted by default, and interactions with them are irreversible.

{% embed url="<https://www.youtube.com/watch?v=ZE2HxTmxfrI>" %}

{% embed url="<https://www.youtube.com/watch?v=pWGLtjG-F5c>" %}

### Additional Guides & Explainers:

{% embed url="<https://101blockchains.com/smart-contracts/>" %}

{% embed url="<https://ethereum.org/en/developers/docs/smart-contracts/>" %}


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