Smart Contract Rules

Definition ∞ Smart contract rules are the predefined conditions and executable logic embedded within a self-executing agreement on a blockchain. These rules govern how digital assets are transferred, how events trigger actions, and how participants interact with the contract. They are immutable once deployed and execute automatically when their conditions are satisfied. These rules facilitate automated, trustless transactions.
Context ∞ The precision and security of smart contract rules are critical for the operation of decentralized applications and are frequently discussed in news related to DeFi exploits or protocol upgrades. Auditing and formal verification of these rules are paramount to prevent vulnerabilities and ensure intended behavior. Ongoing development focuses on creating more robust and secure programming languages and frameworks for smart contracts.