What are crypto smart contracts on blockchain?

Could you please elaborate on crypto smart contracts and their role within blockchain technology? I'm curious to understand how they function and what makes them distinct from traditional contracts. Do they offer any unique benefits or features? Furthermore, are there any risks associated with using smart contracts, and how do they ensure security and transparency? Additionally, could you provide an example of a real-world application where smart contracts have been utilized successfully? Thank you for your time and expertise in this area.