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How do smart contracts work in the Ethereum network?

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How do smart contracts work in the Ethereum network?

Yo, so I've been trying to wrap my head around this whole fancy smart contracts thing, like how it works on the Ethereum network. I understand it's like some kinda program that runs stuff automatically without needing a person to press the "Go" button, right? But how does it go about doing its thing? Does it just pull stuff out of thin air, or are there some specific rules it follows? And how does it work with Ether, the crypto chillin' on the Ethereum network? Does it make the magic happen or something? Can anyone explain this to me like I'm five or something because I ain't Bill Gates or anything. Thanks folks!

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