"Smart contracts" hold significant importance in blockchain technology as they automate and facilitate contractual agreements without the need for intermediaries. These self-executing contracts are stored on the blockchain, ensuring that they are secure, transparent, and immutable. By executing transactions automatically when predetermined conditions are met, smart contracts enhance efficiency and reduce the risk of fraud. They are widely utilized in various applications, including finance and supply chain management, allowing for faster, cost-effective transactions that increase trust among parties involved.