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# Blog 05: Smart Contracts & Tokens

**[Coins Bench](https://daily.dev/sources/coinsbench)** · 5 min read · 0 upvotes · 0 comments

## Summary

A beginner-friendly introduction to smart contracts and blockchain tokens. Smart contracts are self-executing programs on the blockchain that run automatically when conditions are met, enabling trustless automation for payments, insurance, voting, and DeFi. Tokens are assets built on top of blockchains, categorized into three types: fungible tokens (interchangeable, like Bitcoin), non-fungible tokens (unique, like digital art), and soulbound tokens (non-transferable identity credentials like degrees or KYC). A practical example illustrates how NFTs combined with smart contracts can give artists automatic royalties on every resale of their work.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://coinsbench.com/blog-05-smart-contracts-tokens-ebe74f7936d4>

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---

Tags: [#blockchain](https://daily.dev/tags/blockchain), [#web3](https://daily.dev/tags/web3), [#smart-contracts](https://daily.dev/tags/smart-contracts), [#nft](https://daily.dev/tags/nft), [#defi](https://daily.dev/tags/defi)

[View this post on daily.dev](https://daily.dev/posts/blog-05-smart-contracts-tokens-hpi9rowqx)

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