Smart contracts in blockchain technology are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce, execute, and validate contractual obligations when predetermined conditions are met. By leveraging blockchain's decentralized and immutable nature, smart contracts eliminate the need for intermediaries, reducing costs and increasing trust. Used across various sectors, they facilitate transactions in real estate, finance, and supply chain management. The automation and transparency of smart contracts have the potential to revolutionize how agreements are formed and executed.