Smart contract wallets are crypto wallets that leverage the power of programmable smart contracts to introduce advanced functionalities and enhanced security features. These contracts are coded with predefined rules, allowing users to automate transactions, implement custom security measures, and interact seamlessly with decentralized finance (DeFi) services and applications (DApps).

At the core of smart contract wallets is the concept of programmability. Unlike traditional crypto wallets, where transactions follow a straightforward send-and-receive model, smart contract wallets enable users to define conditions and rules for their transactions. This programmable logic empowers users to automate various financial activities, ranging from setting up recurring transactions to implementing specific features for enhanced security.

For instance, users can set up multi-signature requirements, time locks, and other bespoke security protocols to safeguard their digital assets. The decentralized nature of blockchain technology further enhances security, providing users with greater control over their funds without reliance on centralized entities.