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SOL Smart contract: The core engine of the crypto world
In the cryptocurrency field, in addition to holding tokens, almost all operations are inseparable from smart contracts. Decentralized finance (DeFi), pledges, and even transactions, all of which can be achieved on the blockchain not by lawyers or paper documents, but by code that can be automatically executed.
Brianna Migliaccio, a member of the Solana Foundation's developer relations team, was invited to explain how smart contracts work.
It's like a vending machine
Imagine a vending machine.
Migliaccio said: "You put in money, press the button for the product you want, and the vending machine executes this logic. You will definitely get what you choose to output." Vending machines have no built-in staff to serve you drinks and snacks. Its logic is built-in and will automatically select a product for you based on the button you press.
Smart contracts operate in a similar manner, including trading logic that works in a variety of scenarios. Migliaccio said: "This machine has embedded code and no longer requires third-party personnel. It eliminates the need to rely on trusted third parties in any agreement."
The application of smart contracts goes far beyond payments. Any scenario that once required a middleman-such as a custodian agent, broker, lender, etc. -can be turned into a program with its operating rules hard-coded into it. This is why many mainstream blockchains, including Solana, Ethereum, and Avalanche, operate based on smart contracts.
Current applications of smart contracts
Like many other crypto products, cross-border payments and transactions are one of the most prominent and important application scenarios. Migliaccio said: "Let's say my family is in Italy and it takes several days and pays a lot of fees through traditional financial channels. And if it is done almost instantaneously through blockchain, the Gas fee may be less than a cent."
Another killer application of smart contracts is trading. "You don't need to deal with brokers or companies. You can perform everything with complete autonomy and have complete control of the transaction." She explained. This is important because in traditional finance, many products are often inaccessible to ordinary traders.
Migliaccio further explained: "Traditional finance has access restrictions, and you need to become a qualified investor to conduct certain transactions. On the blockchain, you can see all the trading venues and build the complete trading portfolio you want."
Risks of smart contracts
Like anything else, smart contracts do not guarantee that your assets are safe. Migliaccio shared a short checklist for users to refer to when interacting with various smart contracts.
The first thing to focus on is liquidity. "Verify the product and make sure it has sufficient liquidity and a large number of users," she said. Without liquidity, even the most well-constructed smart contracts cannot be executed.
Wallet hygiene is also crucial. Migliaccio advises: "I always recommend keeping most of your money in your hardware wallet and keeping only a small amount in your browser's hot wallet." Hardware wallets are also called "cold wallets", while software wallets are called "hot wallets".
She also advocates the use of open source software. In the era of artificial intelligence, anyone can access a code warehouse on GitHub and then hand it over to a large language model to check for vulnerabilities and potential attack points. "Even if you're not a technician, you can use your Claude Code subscription to scan the code warehouse to determine if it is safe." she said.
