The term smart contract in blockchain technology refers to a self-executing contract with the terms of the agreement directly written into code. These contracts automatically enforce and execute actions when predetermined conditions are met, reducing the need for intermediaries. They enhance transparency and trust in transactions by providing an immutable record on the blockchain. Smart contracts are widely used in decentralized applications (dApps) and can facilitate various operations, such as financial transactions, supply chain management, and digital asset management, streamlining processes and lowering costs.