TRON smart contracts explained

Smart contracts are self-executing programs that can be deployed and executed on the TRON blockchain by users that cut out the need for intermediaries and trust. They are a powerful tool for automating tasks and executing complex workflows on the blockchain.

Use and applications of smart contracts

Smart contracts can be used for a wide range of purposes, including but not limited to:

Decentralized Finance (DeFi)
Non-Fungible Tokens (NFTs)
Decentralized Exchange (DEX)

Examples of smart contracts are: DEX swaps, mint or transfer NFTs, move USDT or other TRC-20 tokens, and more.

How smart contracts work

Smart contracts were created to solve a very specific problem, the need for a trusted third party to execute transactions between two parties. They are self-executing programs that run on the blockchain and can be used to automate tasks without the need for intermediaries or trust.

┌─────────────────────────────┐
│            USER             │
│                             │
│  Sends transaction          │
│  e.g. Transfer 100 USDT     │
└──────────────┬──────────────┘
               │
               │  Transaction
               │  + contract function
               ▼
┌─────────────────────────────┐
│      SMART CONTRACT         │
│                             │
│  Executes programmed logic  │
│                             │
│  ├─ Check user's balance    │
│  ├─ Check transfer amount   │
│  ├─ Update balances         │
│  └─ Emit transaction event  │
└──────────────┬──────────────┘
               │
               │  Computation
               ▼
┌─────────────────────────────┐
│       ENERGY CONSUMED       │
│                             │
│  Energy pays for the        │
│  computational work of      │
│  executing the contract     │
└──────────────┬──────────────┘
               │
               │  Execution result
               ▼
┌─────────────────────────────┐
│       TRANSACTION           │
│          CONFIRMED          │
│                             │
│  The new state is recorded  │
│  on the TRON blockchain.    │
└─────────────────────────────┘

New blockchain state Mainly written in Solidity, smart contracts are deployed on the TRON blockchain and can be executed by users that interact with them.