Can someone explain in clear terms the concept of smart contracts?

[Kross]

I have just been hearing about smart contracts as part of the functionality of cryptocurrency. I don't seem to understand what it means and how it is used. Please can someone on this forum explain in simple clear terms how smart contracts are and how a layman can find it useful?

 

[Suba]

Smart contracts were first built on the Ethereum network where two users can make transactions automatically, transparently and securely. But the contract conditions must be met and the contract will run automatically, useful for reducing the risk of fraud. Some uses of smart contracts: DeFi, NFT and supply chain management.

 

[Augusta]

All transactions related to the smart contract are recorded on the blockchain, making them publicly viewable and auditable