A smart contract is a digital agreement signed and stored on a blockchain network that executes automatically when the contract’s terms and conditions (T&C) are met; the T&C is written in blockchain-specific programming languages like Solidity.
Smart contracts cannot work without blockchain technology, as blokchain’s unique features allows contracts to be conducted and executed without a third party.
Smart contracts themselves don’t make money, but protocol developers usually charge users a small fee for using a given platform. This fee then pays relevant stakeholders, as well as often being split between liquidity providers who help provide the collateral for the platforms to run.
