What is meant by "smart contracts" in the world of cryptocurrencies?

In the world of cryptocurrencies, "smart contracts" refer to self-executing contracts with the terms of the agreement directly written into code. These contracts automatically enforce and execute the terms when predefined conditions are met. Smart contract development involves creating these coded agreements on a blockchain, ensuring they are transparent, immutable, and free from the need for intermediaries. This automation and security are crucial in various cryptocurrency applications, such as decentralized finance (DeFi), where trustless and efficient transactions are essential.