Smart contracts are digital agreements that automatically enforce their terms and conditions on a blockchainnetwork.The terms and conditions are encoded directly into computer code. Smart contracts make transactions quicker, safer, andcheaperby doing rid of the need for middlemen like banks and attorneys. They are a strong tool for building trust and loweringconflictsinmany situations since they can work on their own and be open about what they do. This article goes into extensive detail onthebasic ideas of smart contracts, such as how they are designed, deployed, and carried out on blockchain platforms likeEthereum,which allow decentralized apps. It also looks at the rising number of businesses that are using smart contracts, suchbanking,supply chain management, healthcare, insurance, and real estate, where they make complicated tasks easier and makesurethatcontractual obligations are checked in real time. The article also talks about some of the main problems that are stoppingsmartcontracts from being used more widely. These include code mistakes that might lead to security holes, the fact that existingblockchain systems don't scale well, and the fact that the legal and regulatory contexts are not clear in different countries. Togetthe most out of them, it is important to stress the need for standardized frameworks and better security measures. Inconclusion,smart contracts are a big step forward in digital technology that might change the way contracts are managed andcarriedout.Their continuous growth and use in mainstream systems might make things a lot better. Keywords: NFT, Tokenization, Smart Contract, Blockchain, On-chain Transaction, Solidity