Yes, Holochain can support smart contract functionality and decentralized applications. In fact, it was designed with the aim of enabling decentralized application development, offering a more scalable and efficient alternative to traditional blockchain technologies.

Holochain operates on a peer-to-peer network where each node holds a copy of the application's data, ensuring that data can be easily shared and accessed in a decentralized manner. This makes it an ideal platform for building decentralized applications that require high levels of scalability and flexibility.

In addition, Holochain has its own programming language called Holo, which can be used to develop smart contracts and decentralized applications. This language is designed to be simple, easy to use and secure, enabling developers to create complex applications and smart contracts without having to learn new programming languages.

Overall, Holochain's architecture and design make it an attractive platform for developers looking to build decentralized applications and smart contracts that are scalable, efficient, and easy to use. Its unique approach to decentralization and data storage could potentially transform the way we interact with and build applications on the internet.