Clear DefinitionsSelf-Executing Contract
1 min read
Pronunciation
[self ex-ee-kyoo-ting kon-trakt]
Analogy
A self‑executing contract is like a vending machine: insert payment and it automatically delivers the product.
Definition
A contract with code that automatically enforces and executes terms when predefined conditions are met, without human intervention.
Key Points Intro
Self‑executing contracts operate via:
Key Points
Automated enforcement: Code enforces terms without intermediaries.
Condition triggers: Execution when on‑chain events match criteria.
Immutable logic: Contract code cannot be changed post‑deployment.
Transparent operations: All executions are publicly verifiable.
Example
An insurance payout contract that automatically releases funds to farmers when an oracle reports drought conditions.
Technical Deep Dive
Contract defines functions with require/assert statements as triggers. Oracles feed external data via transactions. When conditions evaluate true, the contract’s state transition functions execute within the same transaction, updating balances or emitting events.
Security Warning
Caveat
Cannot be paused or upgraded easily; include kill switches or proxy patterns for emergency intervention.
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