How Do European-Style Options Simplify the Smart Contract’s Role Compared to American-Style?

European-style options can only be exercised at the expiration date. This simplifies the smart contract logic significantly because it only needs to check the underlying price and execute settlement once, at expiry.

American-style options can be exercised any time before or at expiry, requiring continuous, complex logic for monitoring and potential early execution. The European style reduces computational complexity and gas costs.