Smart Transactions

Definition ∞ Smart transactions are automated financial operations executed on a blockchain, often facilitated by smart contracts. These transactions carry embedded logic that defines conditions for their execution and settlement. They can perform actions like transferring assets, distributing funds, or managing agreements without intermediaries. This capability enhances efficiency, transparency, and trust in digital asset exchanges.
Context ∞ The advancement of smart transactions is a central theme in decentralized finance and blockchain application development, expanding the utility of digital assets beyond simple value transfers. Discussions often focus on the security vulnerabilities inherent in smart contract code and the legal enforceability of these automated agreements. A critical future development involves the widespread adoption of audited and formally verified smart contract standards to ensure the safety and reliability of complex smart transactions.