The role of smart contracts in blockchain technology is to automate and enforce the execution of agreements between parties without the need for intermediaries. These self-executing contracts contain predefined rules and are stored on the blockchain, ensuring transparency and security. When conditions are met, smart contracts automatically trigger the agreed-upon actions, such as transferring assets or releasing funds. This capability reduces errors, increases transaction speed, and minimizes costs associated with traditional contract management, making smart contracts a valuable tool for various industries, including finance, real estate, and supply chain.