Smart contracts function as automated agreements where the terms are encoded directly into computer code. Digital contracts operate independently to handle agreement negotiations and execution without requiring third-party intermediaries. The idea of smart contracts was first introduced by Nick Szabo during the 1990s before receiving widespread recognition through blockchain advancements particularly through Ethereum. Smart contracts run on blockchain networks where they guarantee security and transparency while maintaining immutability. The launch of the Ethereum platform in 2015 stands as a key development in smart contracts history because it brought widespread attention to their use in decentralized applications (dApps) and Initial Coin Offerings (ICOs). Vitalik Buterin stands as a key figure in smart contract development because his co-founding work with Ethereum transformed their applications across multiple industries. Gavin Wood stands out as both an Ethereum co-founder and the main developer behind the Solidity programming language which powers smart contracts. Smart contracts have revolutionized traditional contract processes through automated and decentralized agreement security. Smart contracts offer transformative applications across financial transactions and supply chain management which represent a revolutionary change in how contracts are executed while establishing a new framework for trustless interactions.