Definition ∞ Smart Contract Cost refers to the computational resources, typically measured in gas fees, required to execute a smart contract on a blockchain. This expense covers the processing power and storage needed to perform the contract’s programmed functions. The cost varies based on the complexity of the contract’s operations and current network congestion. Efficient smart contract design can help minimize these execution fees.
Context ∞ Managing smart contract cost is a significant consideration for developers and users within decentralized finance and other blockchain applications. Discussions often revolve around optimizing contract code and utilizing Layer 2 scaling solutions to reduce these operational expenses. Future protocol upgrades and network improvements aim to lower smart contract execution costs, enhancing accessibility and affordability.
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