The advent of the second generation of blockchain networks, Ethereum in particular, has led to the proliferation of smart contracts. These are programs that are installed on top of the blockchain. They are responsible for conducting transactions on the network and are designed in such a way that they cannot be disabled or changed unilaterally.
Smart contracts have found widespread use in the field of decentralized finance (DeFi). To be precise, smart contracts are the backbone of the DeFi industry protocols. They are used in payment processing for Decentralized Applications (DApps) and Decentralized Exchanges (DEX). Also, smart contracts are used to tokenize securities and other assets. In particular, it allows you to trade stocks not only on stock exchanges, but also on crypto ex. We wrote about this in more detail in this article.
Additionally, smart contracts are used to make conditional payments, data distribution, voting systems, games and other applications running on the blockchain.