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A basic definition of the Blockchain Technology would be "The Technology on which Cryptocurrencies or Digital assets are built". There are more broader and advance definitions for the Blockchain, but for non-technical and people new to this Technology; this is my explanation to the barest minimum. Just like the most popular "Bitcoin" which has decentralized public ledgers i.e. open to all, that holds all transactions in a or by a trustworthy source that keep tracks of who and what owns what!
This Technology was created to solve vast volumes of transactions processes that no conventional Bank or any Financial institution could handle on daily basis, this had helped millions of internet trades due to the decentralized nature which requires no intermediaries that inflates cost and at the same time details of transactions/informations is secured on several computers at the same time. One other feature that makes the Blockchain seamless are the "Smart Contracts"
WHAT MAKES A CONTRACT SMART
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"Self Executing" nature of these contracts makes them smart, electronics activities on the Blockchain allows algorithm/logics to be built on it; and this gives rooms for several rules and protocols to be stored on this public ledgers and acts automatically in accordance with the conditional terms programmed with it. The Blockchain creates rooms for many chains/tokens, Cryptocurrencies) with different and varying forms of informations which could be backed by trustworthy systems e.g The Government, Legal System etc.
DO WE NEED SMART CONTRACTS?
Yes we do!
Because it is easy to build for the developers and manage, clear and concise without the need for 3rd parties which makes it more efficient in financial dealings e.g payment processes that used to be delayed in banks and other financial institutions. Though, Blockchain is still evolving and still not as smooth and perfect, power cost for every transactions on the Blockchain is still a challenge which brings about the varying transaction fees incurred on any cryprocurrency transactions.
REAL LIFE SMART CONTRACT APPLICATION
Assuming i want to buy "Prepaid Data Plans" at a mall, explaining the volume I want and what i need it for; the store attendant takes my cash, press a few buttons on the Keyboard and confirms my identity with a valid ID card and Viola- "I get my data pack"
On the Blockchain, it is the same process with the variables provided by multiple Blockchains e.g Bank(Where money is saved) equivalent of a wallet, a government administrative where citizens details are trust-ly stored. For this, a proportion of my cryptocurrency held on the Blockchain covers the payment then my ID verification is done when the service provider contacts the Government Blockchain that holds my details for the transaction to be completed. This is a logic built on the Blockchain which no longer include a bank or a cashier. A great deal of interest for Government administrations, banks, private institutions that issues strategic identity related informations used over and over again.