Smart contracts are executable programs built in the Solidity scripting language. They allow users to send value (money) to others using a digital currency, such as Ethereum. The value is called “Ether” and is similar to Bitcoin, another cryptocurrency. SOL files used to complete Ethereum transactions are processed by the Ethereum Virtual Machine (EVM). They record information such as the sender, receiver, and amount transferred. When the contract is completed, the transaction information is added to the blockchain. Smart contracts may be created for a variety of purposes, such as blind auctions, crowdfunding, voting, and multi-signature wallets.
SOL files are supported by Dapp, which is a Solidity package manager, build tool, and deployment assistant.
They are also supported by various programs with the Solidity plugin installed, such as Visual Studio, Visual Studio Code, Vim, and Sublime Text.
NOTE: Smart contracts are also known as decentralized apps (dapps) on Ethereum.