A smart contract in blockchain technology is a self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically enforce and execute agreements based on predefined conditions, reducing the need for intermediaries. This enhances efficiency, transparency, and trust in transactions. Deployed on decentralized platforms like Ethereum, smart contracts eliminate potential disputes and increase security by utilizing cryptographic principles. They are used for various applications, including financial transactions, supply chain management, and digital identity verification.