Smart Contract
A smart contract is software deployed on a blockchain that automatically executes predefined rules when certain conditions are met. In RWA markets, smart contracts can help manage token issuance, transfers, ownership records, investor restrictions, distributions and other processes.
Why it matters to you
Smart contracts allow parts of an investment to be automated rather than relying entirely on manual processes. But a smart contract only controls what has been programmed into it. It does not automatically verify that an offchain asset exists, establish legal ownership or guarantee that external information is accurate.
Terms that sit next to this one
Learn real world assets properly
Our RWA course. Chapter 1 is free.