Yes, Ethereum supports smart contracts.
A smart contract is a computer protocol that allows for the verification, enforcement, or performance of a contract. Smart contracts were first proposed by Nick Szabo in 1996 as a way to create “electronic commerce” or “e-commerce” without the need for third-party intermediaries.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is unique in that it allows developers to create their own custom tokens on the Ethereum blockchain. This has given rise to a new wave of decentralized applications (dapps) that are built on Ethereum.
Dapps are often categorized by their use case. Some popular dapps include Augur, an decentralized prediction market, and MakerDAO, a decentralized lending platform.
Ethereum’s support for smart contracts makes it an ideal platform for dapps. This is because dapps need to be able to trustlessly interact with each other and with users.
Ethereum’s smart contract functionality allows dapps to do this in a secure and reliable way.