role of smart contracts in blockchain

What are smart contracts?

Hammad Ali

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August 25, 2022

The same way we have digital contracts which are written as program and execute automatically after some conditions are met. These programs are solving many real-world problems because of its automation and security. Since without these smart contracts, everyone should need to have a physical contract to prove something. Moreover, the validity of that physical contract is another issue which we were facing. So, with the evolution of the blockchain era, these problems have been solved by developing smart contracts.

"Bitcoin is the most important invention in the history of the world since the Internet."

—Roger Ver, Bitcoin angel investor, and evangelist

With the smart contracts, there is no need of any physical form to prove your ownership of assets. Moreover, due to the transparent nature of the blockchain, the ownership of the assets can be verified easily.  

 

Tradition Contracts 

1-3 Days 

Manual Remittance 

Physical Presence 

Expensive 

Lawyer Necessary  

Smart Contracts 

Minutes 

Automatic Remittance 

Virtual Presence 

Fraction of Cost 

Lawyer may not be necessary 

How do smart contracts work? 

A computer program has some core parts which are included in every program. These components of the program are function, if else statements, variables etc. The same way smart contracts have function, if else statements and variable and these are the building blocks of the smart contracts.  

Specific part of the code run when some condition is met and action is performed. This action includes send money , registering a house, transfer ownership of the house etc.  

Smart Contract Working | Block360 | Blockchain

Image Source: Edureka

Benefits of Smart Contract: 

Speed, Efficiency and Accuracy 

Since smart contracts are computer program and run immediately after some state. There  is no need of paperwork and physical presence of the person to fulfil the agreement.  

Trust and Transparency 

Smart Contract are deployed on the blockchain network which make it transparent.  

Information is accessible and easy to validate which makes a trust between parties.  

Security 

Blockchain is high secure network and cannot be compromised easy due to highly  encryption and connectivity. It’s not possible to hack the blockchain because he has to  change the entire chain. 

Savings 

In the agreement between parties, there is always an intermediate entity which takes  time as well as money. Smart contract removes that entity, save associated money and  time.

Platform to deploy Smart Contracts: 

Ethereum 

Smart Contract Language: Solidity 

Polkadot 

Smart Contract Language: Depends on the selected chain 

Hyperledger 

Smart Contract Language: Javascript, GO 

Tezos 

Smart Contract Language: Michelson 

Stellar 

Smart Contract Language: Net, Scala, C++, GO 

Solana 

Smart Contract Language: C, Rust 

Corda

Smart Contract Language: Java, Kotlin, DAML  

Cardano 

Smart Contract Language: Plutus, Marlowe, Solidity and many others 

Tools for writing and deploying Smart Contracts 

1. Truffle

Truffle is a development framework for the Ethereum. It has all the tools that are required  for building smart contract from scratch to production ready. 

2. Mist Browser 

A separate browser for interacting with the decentralized applications. 

3. Metamask 

Metamask is a cryptocurrency wallet used for interacting with the Ethereum based  networks. 

4. Remix 

Remix is a web-based IDE that is used for writing, compiling, deploying and interacting with the smart contracts.  

Conclusion:

With the passage of time smart contracts are evolving and many other platforms have been introduced. Smart Contract has taken a revolution in the world of technology and change the ways for handling money. The understanding of the smart contract is very important because in the future all the assets will be handled by these contracts.

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