Solicy Logo
Solicy Logo
Book a Call

Smart Contracts in DeFi: Why They’re the Backbone

Author's Avatar

Hovhannes S.

CEO & Founder

Reading Time: 6 min

FAQ: Smart Contracts and Decentralized Finance (DeFi)

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute transactions and enforce agreements when predefined conditions are met, without the need for intermediaries.

Smart contracts enhance DeFi by enabling automated, trustless financial services. They remove the need for intermediaries like banks, reduce transaction times, and increase transparency and security in financial operations.

DeFi, or Decentralized Finance, refers to financial services and products built on blockchain technology that operate without traditional financial intermediaries. It offers services like lending, borrowing, and trading through decentralized platforms.

In DeFi, various types of smart contracts are used, including payment contracts for transactions, multi-signature contracts for enhanced security, and DAO contracts for decentralized governance and decision-making.

Smart contracts are considered revolutionary because they automate and secure financial transactions, reduce costs by eliminating intermediaries, and provide transparency and efficiency that traditional financial systems cannot match.

CURIOUS ABOUT WHAT WE BUILD?

Check out our portfolio.

Discover More Blogs

How to Develop a Mobile App featured image

How to Scale MVP to Full Product: Next-Level Strategy

Your product journey doesn't end with the release of your MVP. The tru...
Aug 22, 2025 | Reading time 6 min
What-is-AI-in-software-testing

Reasons Why Outsourcing MVP Development is a Good Idea

The development of a Minimum Viable Product (MVP) is an important benc...
Aug 21, 2025 | Reading time 5 min
Software Development in Educational Apps

KPIs to Measure Your MVP's Success

Creating a minimum viable product (MVP) is only the start when it come...
Aug 21, 2025 | Reading time 6 min
Custom Logistics Management

How to Build an MVP as a Non-Technical Founder in 2025

Founding a tech firm without learning to code may not look possible, b...
Aug 21, 2025 | Reading time 7 min
AI in E-commerce featured image

Top 10 Successful Minimum Viable Product (MVP) Examples

Many of the world’s most recognized companies began with a very simple...
Aug 14, 2025 | Reading time 7 min
devops solution

How to Test Your MVP: Proven Methods for Validation

This is a complete reference that will take you through the proven met...
Aug 14, 2025 | Reading time 7 min
Ready to Get Started?
Get in Touch with Us!

Fill out the form and we will contact you as soon as possible.

Choose Country
Select Service