Abstract: Smart contracts establish a trust mechanism with algorithm technology as the core, promoting the digital and intelligent transformation of government governance and legal construction. However, in the face of emerging technologies such as smart contracts and blockchain, the current legal regulatory mechanism has inherent shortcomings and operational obstacles. Relying on the responsibility rules in the private law is not enough to achieve precise governance of legal risks in administrative smart contracts. Using qualitative analysis, this paper elaborates on the operational mechanism of smart contracts and explores the application of smart contracts in the field of public administration. Based on this, the unique legal risks and regulatory requirements of smart contracts in the administrative field are sorted out. Efforts should be made to establish a standardized “law—code” conversion mechanism, strengthen the regulation of algorithmic power, and establish the position of the responsible subject of administrative organs. A multi-level and all-round administrative regulation mechanism should be constructed, so that smart contracts can truly become a tool to promote the modernization of the national governance system and governance capacity.