Category: Knowledgebase

A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control or document events and actions according to the terms of a contract or an agreement. Source

Video Explanations:

Kaspa Smart Contracts Explained: A Game Changer For Crypto!
What are Smart Contracts in Crypto? (4 Examples + Animated)

Decentralized Finance (DeFi) Platforms
DeFi platforms utilize smart contracts to offer financial services like lending, borrowing, and trading without traditional intermediaries. Platforms such as AAVE and Uniswap enable users to engage in financial activities directly through smart contracts, enhancing efficiency and accessibility. This automation reduces costs and democratizes access to financial services.

Voting Systems
Smart contracts facilitate secure and transparent voting systems, ensuring tamper-proof elections. They can automate vote counting and verification, increasing trust in electoral processes. This technology has been used in organizational decision-making and governmental elections. However, ensuring voter privacy while ensuring transparency can be a complex challenge. Moreover, the technology requires widespread adoption and education to be effectively implemented.

Healthcare Data Management (or any data management)
Smart contracts enhance healthcare data management by automating the sharing of patient records between authorized parties. This ensures data security and compliance with privacy regulations. Patients gain control over their data, deciding who can access it and under what circumstances. However, integration with existing healthcare systems can be challenging. Additionally, ensuring accurate data input is essential to avoid errors in medical records.

Gaming and Esports
Gaming platforms utilize smart contracts to manage in-game assets, rewards, and tournament payouts. Players can securely buy, sell, or trade items without intermediaries. Smart contracts also enable decentralized gaming ecosystems, fostering innovation and player ownership. However, blockchain gaming faces scalability and usability challenges, particularly with real-time gameplay. Additionally, the environmental impact of blockchain transactions can concern eco-conscious gamers.

(Kaspa does not suffer from scalability problems.)

Source: https://helalabs.com/blog/12-top-smart-contracts-examples-to-know-in-2025/

Smart contracts are digital agreements encoded directly into blockchain networks like Ethereum, Binance Smart Chain, and Solana. Here’s how they function:

Predefined Rules: Smart contracts are programmed with specific terms and conditions.

Trigger Events: Once these conditions are met, the contract automatically executes actions, such as transferring funds or verifying ownership.

Decentralized Execution: Unlike traditional contracts, there is no need for intermediaries, reducing costs and processing times.

Source: helalabs.com

Some developers are working to bring EVM to Kaspa, while others are working to build the infrastructure to bring ANY SC to Kaspa. Core developers are working on the Based ZK Rollup design SC should follow to take full advantage of Kaspa as a sequencing layer. (SC following this design effectively operates as an extension of the layer 1, instead of an independent layer 2, creating a L1.5.)

In Development:
Sparkle - more info here
Igra - more info here
KasEVM - more info here
Kasplex - more info here

Listen to this recording: "Are Smart Contracts ready for Kaspa?"

A canonical bridge is how your Kaspa enters and exits the layer 2.

Simplified, it is an address owned and controlled by the L2, creating a bridgedKAS within the L2 instance, backed 1-1 on the baselayer. Source: research.kas.pa