Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on blockchain networks, which provide a decentralized and immutable ledger. These contracts automatically enforce and execute the terms of an agreement when predetermined conditions are met, without the need for intermediaries. By leveraging blockchain’s transparency and security, smart contracts can reduce fraud, enhance trust, and streamline transactions. They are commonly used in various applications such as financial services, supply chain management, and decentralized applications (dApps), revolutionizing how agreements and transactions are handled in the digital age.