On-Chain Agreements
On-chain agreements are legally binding or enforceable contracts that are executed and stored on a blockchain, typically using smart contracts to automate terms and conditions. They enable trustless, transparent, and immutable agreements between parties without intermediaries, often applied in decentralized finance (DeFi), supply chain management, and digital asset transactions. This concept leverages blockchain's decentralized nature to reduce fraud, lower costs, and increase efficiency in contractual processes.
Developers should learn on-chain agreements to build decentralized applications (dApps) that require automated, secure, and transparent contractual logic, such as in DeFi protocols for lending, insurance, or token swaps. They are essential for implementing self-executing agreements in blockchain ecosystems like Ethereum, where smart contracts enforce terms without human intervention, reducing reliance on traditional legal systems. Use cases include creating escrow services, royalty agreements for NFTs, and automated governance in DAOs.