Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They operate on a blockchain platform, which ensures that they are secure, transparent, and decentralized. Unlike traditional contracts, which require intermediaries like lawyers or notaries for validation and enforcement, smart contracts automatically execute or enforce the agreed-upon actions when predefined conditions are met. This could involve anything from transferring ownership of digital assets to releasing funds upon the completion of a service. By removing the need for middlemen, smart contracts have the potential to dramatically reduce transaction costs and increase efficiency. Initially popularized by the Ethereum blockchain, smart contracts have since been adopted by various other blockchain platforms and have found applications in numerous sectors including finance, supply chain management, and even voting systems. Their automation, accuracy, and transparency make them an increasingly important tool in today's digital landscape.