Smart contracts are programs stored on a blockchain that automatically execute the terms of an agreement. They consist of conditions and rules that are triggered when contract terms are met. The concept of smart contracts was first introduced in 1994 as a way to make electronic transactions more transparent and efficient. Today, smart contracts are written in programming languages like Solidity and power applications on blockchain networks, allowing them to automate processes in industries like finance, real estate, and supply chains. The document promotes certification courses from the Blockchain Council for individuals to develop skills in creating smart contracts and building careers in the blockchain field.