Initial coin offering (ICO) is an easy "crypto" way to raise funds for any new startup or a new venture. A team of people, a small business, or independent individuals could start an ICO in order to crowdfund a new business idea.
Cryptocurrency is kind of new generation of digital currency for the payment systems with high security that allows users to perform safely as well as real-time online transactions. It is a medium of exchange like other Fiat currencies such as USD, GBP, EUR, etc. It is like the money you've got in your credit/debit card, that can be used for purchases. Transactions are visible in the bank statements/ledgers but you don't get to touch it or feel it.
A smart contract is also known as a crypto contract, it's a computer program that directly controls the transfer of digital currencies or assets between parties under certain conditions. A smart contract not only defines the rules and penalties in an agreement in the same way that a traditional contract does, but it can also automatically enforce those obligations. This is an effective way to get the work accomplished in the given time, therefore it provides transparency in the contracts. It does this by taking information as input, assigning value to that input through the rules set out in the contract, and executing the actions required by those contractual clauses – for example, determining whether an asset should go to one person or should be returned to the other from whom the asset was originated in the first place. These contracts are stored on blockchain technology, Blockchain is an ideal technology for storing the smart contracts because of its security and immutability.