Smart contracts significantly impact business transactions by automating and securing agreements between parties without the need for intermediaries. Built on blockchain technology, these contracts execute automatically when predefined conditions are met, reducing the risk of fraud and enhancing trust between parties. This automation leads to faster transactions, lower costs, and increased efficiency in various sectors, including finance, real estate, and supply chain. By minimizing human intervention, smart contracts streamline operations and provide a transparent and immutable record of all contractual agreements.