In web3, we store a contract, an actual agreement, and this doen't just meana digitalized PDF. It it a mini program with a predefined list of rules to very specifically control the business transactions. And what makes a smart contract smart is that once on the blockchain, it will be executed automatically, based on those rules. Because smart contact is written in code, it requires no intermediary to make them happen, they're fully automactic. Like the other things in blockchain, once it's placed there, it can't be changed.
IBM "Smart contracts are digital contracts store on a blockchain that are automatically executed when predetermined terms and conditions are met. They typically are used to automate the execution of an agreement so that all participants can immediately certain of the outcome without any intermediary's involvement or time loss."
https://www.ibm.com/topics/smart-contractsMicrosoft "a smart contract is a program that's stored inside a blockchain. Smart contracts extend blockchain from data to code. They represent an agreement between parties. The agreement is coded, and when an action happens, the code runs and provides a response. All of the terms and conditions of the contracts are programmatically defined. ... Smart contracts run on their own, send events that trigger state transistions, and call functions. They're pefect for blockchain technology because they allow people who don't know one another to do business in a securely specified way that requires no middleman. ... Smart contracts are most commonly used with Ethereum. It allows smart contacts to be defined to help facilitates the transfer of digital assets, like ether."
https://docs.microsoft.com/en-us/training/modules/blockchain-solidity-ethereum-smart-contracts/2-smart-contractswikipedia "A smart contract is a computer program or transaction protocol that is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of need for trusted intermediators, arbitrations costs, fraud losses, as well as the reduction of malicious and accidental exceptions. Smart contracts are commonly associated with cryptocurrencies, and the smart contracts introduced by Ethereum are generally considered a fundamental building block for decentralized finance(DeFi) applications." https://en.wikipedia.org/wiki/Smart_contract
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