Blockchain technology enables the creation and execution of smart contracts, which are digital agreements stored on a blockchain, ensuring immutable, decentralized, and secure execution. These contracts operate on conditional logic, such as "if x happens, then y executes," and have evolved from basic multisignature transactions on Bitcoin to more complex, scriptable versions on Ethereum that can interface with off-chain data through secure middleware known as oracles. Smart contracts offer advantages over traditional digital contracts, including enhanced security, reliability, fairness, and efficiency, by eliminating single points of failure and intermediaries. They are being effectively utilized in various sectors, including token management, decentralized finance (DeFi), gaming, and insurance, where they automate processes and reduce reliance on centralized entities. While still in the developmental stages, smart contracts are gaining traction due to their unique attributes that provide trust and transparency in various applications.