Aug 25, 2022
Hammad Ali
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.
role of smart contracts in blockchain
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.
