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What is so smart about smart contract platforms and why build a custom one?

Blockchain

Trends

A smart contract is like an ordinary contract in the physical world, yet it’s digital. It basically works via a small program saved inside a blockchain. However, when you approach the matter specifically, a smart contract is software written in a top-level computer programming language that holds the rules for terms of an agreement, validates the fulfillment automatically, and conducts the negotiated terms. Additionally, as a smart contract eliminates the need for a third party to build business relations, the two sides transact directly.

What are smart contract platforms?

So, what are smart contract platforms? A smart contract platform is a framework for setting up decentralized apps. It serves like an OS, yet, instead of apps functioning on the operating system, the blockchain and its smart contracts run as the operating system and underlying framework themselves. If you’re searching for the most credible smart contract platforms today, let us review some of them:

Ethereum

ETH deservedly leads when it comes to smart contracts. Furthermore, it’s the most worthwhile startup project of the last two decades. What makes the Ethereum smart contract exceptional is the high level of support and standardization it provides. In fact, Ethereum has broadcast a set of accurately specified rules for smart contract developers to decrease the risk of failures and facilitate the whole development process. Smart contracts are written in Ethereum’s programming language, Solidity. Ethereum smart contracts stand out for their accuracy and effectiveness.

Stellar

Released in 2014, Stellar is among the oldest smart contract platforms. Stellar’s money-exchange standout feature makes large-scale businesses implement it into their infrastructure. It greatly facilitates international payments. It also functions in a much more straightforward manner than Ethereum.

EOS

Since EOS came to use in 2017, it has attracted the attention of crypto users. With almost zero transaction fees and exceptional speed (most transfers are fulfilled instantly), EOS appears irreplaceable for smart contract execution. This platform is primarily aimed at big-scale apps.

Solana

The blockchain network used for building SOL tokens and DeFi apps, Solana catches the eye with its new energy-effective ecosystem. Multiple Solana smart contracts can run simultaneously, saving time and making Solana a significantly cost-effective network.

Polkadot

The Polkadot blockchain network was primarily set up to implement the decentralized internet Web 3.0. Polkadot enables the user to build smart contracts, new tokens, or blockchains, allows blockchains to exchange data, and appears to be easily upgradeable. Furthermore, being a segmented multi chain network, Polkadot can conduct large transactions on some chains alongside, thus resolving the issue of legacy networks processing transactions in sequence.

Hyperledger

Hyperledger Fabric is an authorized blockchain, which means the participants can’t hide their identities, and authentication is a must. This is especially vital for businesses dealing with sensitive data and adhering to the data protection requirements (i.e., GDPR). Hyperledger blockchain smart contract stands out for its high security, secrecy, and trustworthiness. For instance, it enables users to build secret channels for specific network members so that only a particular group of participants sees the transaction data.

Tron

This is an enhanced blockchain platform that democratizes and decentralizes the industry of content distribution with the help of permissionless tools, protocols, and platforms. And via a smart contract-capable blockchain enables developers to set up and utilize DApps regardless of their purpose – gaming, exchanging, etc. The specific reason for which Tron is included in our list of top smart contract blockchain options is that anyone can access the content on this network. This way, it becomes possible to bypass the censorship measures that companies or governments impose.

XDC Network

The business-inclined hybrid blockchain XDC Network targets multinational finance and business. It sustains smart contracts, two seconds for transactions, 2000 TPS, etc. The blockchain stands out for an exceptional level of security. It has all the potential to become the perfect smart-contract public blockchain for all-size companies in token distribution and DApps.

Features of smart contracts

Smart contracts are built and carried out within blockchains. Consequently, they have specific properties. However, the two basic features of smart contracts are as follows:

Immutability. A blockchain smart contract is not changeable; hence, nobody can interfere with or break a smart contract.
Distributability. Thanks to this feature, anyone in the network can validate the result of a smart contract, similar to any transaction on the blockchain. The distribution property leaves no room for a hacker to force control to grab funds since all other participants can easily detect any attempt of an attack and indicate it invalid.

Smart contract platforms optimize transactions on a whole new level.

Embrace security, efficiency, and automation for a smarter way of doing business.

How do smart contracts work

Smart contracts are computer algorithms created for forming, controlling, and providing data on the asset’s owner. They aim to reduce the requirement for dependable intermediaries, fraud losses, enforcement costs, and malicious exceptions. So, how do smart contracts work?

When one is created, and the payment is fulfilled (transactions also require gas fees via very small amounts of cryptocurrency), it is mined. After people withdraw from the contract, it must be mined with a separate transaction.

Benefits of smart contract platforms

Let us review the major perks of smart contracts that make these digital agreements more preferable to physical ones.

Great efficiency and accuracy. Being completely digital and automated, smart contracts don’t require any paperwork that otherwise may delay the processing time.
Secured data. The transaction data in the blockchain is almost impossible to hack since otherwise each block will have to be recalculated.
Trustworthiness. Since smart contracts lack any third-party involvement, while the data record is distributed across the whole chain, all contract members feel trust toward it.
Autonomy and saving. Smart contracts are affirmed without brokers, and no extra costs can be applied.

Real world examples of smart contracts

All the benefits of smart contracts increase the popularity and practicality of their use in the real world. Let us introduce the most vivid smart contract examples taken from real-life industries.Trade finance benefits from smart contracts immensely. According to the report from Santander InnoVentures, thanks to blockchain technology, over 20$ million worth of savings must have been registered as of 2022. And quite a big part of this sum comes from smart contracts automating approval workflows and clearing calculations which are otherwise rather labor-intensive.Other real-world examples of smart contracts are related to NFTs and iGaming. Actually, the global gaming industry is a hundred-billion dollar ecosystem that doesn’t stop growing a second. Blockchain technology in gaming is driven by NFTs, which, in their turn, rely on smart contracts.Even the industry of real estate heavily depends on the blockchain today. Smart contract technology reworks the documentation and transaction processes integrating the transactions in real estate. For instance, there has been a blockchain-based land title registry in the Republic of Georgia since 2016, and a similar one is underway in the United Arab Emirates.

How to write a smart contract

So, as you can see, smart contracts can significantly ease the collaboration between two parties, increase the security of the deal, and save much on costs due to reducing the need for any third parties. And if you intend to get one, yet have no idea how to write a smart contract, any smart contract developer of Innowise is at your disposal.

Our experienced and professional blockchain developers will scheme any digital contract from scratch per your requirements. With years of expertise in the field, Innowise has made a reputation as a trustworthy company among numerous smart contract development services. So, contact us today to give a start to your project straight away!

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Dmitry Nazarevich CTO

Date: Aug 25, 2022

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What is so smart about smart contract platforms and why build a custom one?