By the end of 2021, the smart contract market generated $150.2 million in revenue, and by the end of 2032, that revenue is expected to reach $1,515.4 million.
Given how popular smart contracts have become, if you want to learn more about them, chances are you’ll want to learn more. The success rate of smart contracts will be crucial for the development of Web 3.0 in the future.
Back in time, smart contracts were first developed in 1994 by Nick Szabo, an American computer scientist who was also known as the creator of the virtual currency known as “Bit Gold.” However, what could be the correct definition of “smart contract”?
How Do Smart Contracts Work For Multiple Blockchain Platforms?
With regard to the above information, development of smart contracts is a groundbreaking layer that allows users to communicate and transact through a robotic intermediary using blockchain technology.
The main guiding factor that makes smart contracts more reliable and authentic to pursue is that they initiate automated tasks and host decentralized apps. Now users can easily create their smart contracts using simple and easy interface of blockchain based platforms.
Here are the most prominent smart contract platforms based on blockchain technology:
1. Ethereum
Introduced in 2013, Ethereum is widely known as a decentralized platform that enables the effective execution of smart contracts.
Rather, Ethereum was the very first platform to create entire languages like Serpent, Solidity, low-level lisp, and Mutan to serve cryptocurrency user applications.
It converts these language contracts into machine code and loads into Ethereum Virtual Machine and then executes it. On this platform, smart contracts provide an account-based data format where each valuable user is identified by their digital wallet.
Ethereum’s market capitalization is far beyond the reach of its competitors. It will reach $223 billion by mid-2023, combining resources from most smart contract platforms.
Ethereum is always the best choice for developers willing to join the largest smart contract ecosystem.
There is a huge number of smart contract development platforms that are already on board and working well.
Maker DAO and Compound using smart contracts are Ethereum-based makers of smart contracts that allow users to borrow and earn interest.
2. Polka dot
Polkadot, one of the most brilliant smart contract ecosystems developed by Ethereum co-founder Gavin Wood, created by Parity Technologies, a software development company, is now the fifth largest cryptocurrency project based on blockchain networks.
Polkadot’s platform can serve various chains within the current blockchains. Due to its adaptability, parachains can hold several functions at once, including smart contracts, ZK snarks, UTXO transactions, and other decentralized technology.
Relay chain is an integral part of Polkadot’s interoperability of parathreads and parachains.
Developers can design custom tokens and governance models with Polkadot. Scalability and parallel transaction processing are promoted by using parachains as shards. For connecting parachains to external blockchains like Ethereum, this platform offers bridge chains.
Polkadot’s Ethereum-enabled smart contract platform, Moonbean, allows programmers to leverage the solidity-based smart contracts connected to Moonbeam.
3. Solana
Solana is based on a collection of software from 2017 from companies such as Intel, Dropbox and Qualcomm.
A new generation of smart contract platforms has been developed with the aim of solving problems of scale. Solana recorded 65,000 transactions every second.
The most innovative consensus algorithms including Proof of History (POH), Proof of Stake (POS), Tower BFT, Solana clusters, Gulfstream, Pipelining, Turbine and Sealevel are combined.
Instead, transactions are often recorded in their own blocks, grouped together, and used as inputs for subsequent transactions.
Smart contracts can be processed simultaneously in Solana with its advanced technologies, such as sea level. This technology makes this platform one of the fastest and most attractive for Dapps who need instant output.
People rely on inventive, technology-driven knowledge and need consistent performance regardless of network load, making Solana a popular choice.
4. Avalanche
Avalanche is a secure, fast, programmable and interoperable smart contract platform that allows users to create unique blockchain applications. It contains three built-in blockchains suitable for different needs.
Exchange chain: This chain is used to record and manage transactions in assets and transactions.
Platform Chain: To manage validators, coordinate and set up subnets
The contract chain of the Ethereum Virtual Machine is used to create smart contracts.
5. Algorand
At a cost of $0.0003, Algorand’s smart contract technology enables 6,000 transactions per second. This platform uses Pure Proof of Stake (PPoS), a constrained method that gives any user the chance to be chosen as a validator.
Alogrand ensures the highest level of security and privacy. It allows smart contracts to be created by developers in Python or the Transactions Execution Approval Language (TEAL).
This platform has its own smart contract execution environment called Algorand Virtual Machine (AVM).
6. Hyperledger fabric
Hyper Ledger Fabric is based on distributed blockchain technology and is also used to execute smart contracts. On this platform, the execution of smart contracts is referred to as chaincode and written in Go.
Like Ethereum which uses virtual machines to formulate smart contracts, fabric uses a docker container to run the code.
Three alternatives are available to developers when building apps with Hyperledger. The Java SDK, the CLI, and the Node.js SDK. The network typically hosts Fabric’s chaincode and smart contracts, which are recognized by name and version.
Fabric’s network is based on private consent and accommodates broad enterprise applications. Before joining the network, it needs certificate authorization and approvals.
7. Corda
Corda focuses on digital currency applications and is known as a distributed ledger platform for storing digital databases, assets and information from the past. Corda’s smart contracts run on Java Virtual Machine (JVM) and use efficient programming languages such as Java and Kotlin. The data of Corda smart contracts is stored in the ContractState S on a ledger.
Corda is generally used to enable private platforms where companies can create secure and private platforms for the exchange of digital assets. It works on a consensus algorithm called Raft for fast consensus on private blockchains.
8. Stellar
Stellar is a specialized and advanced platform for digital currency applications. This is a more accessible and easy cryptocurrency to get. It supports an extensive range of languages, including Java, Python, Golang, and PHP.
Stellar’s smart contracts are a collection of connected and executed transactions that use various constraints to design, send and secure trade value.
Stellar’s smart contracts combine transactions with a variety of constraints that must be met to get the desired result.
The Sorobon smart contract platform, created by the Stellar Foundation, enables the development and deployment of smart contracts over networks.
9. Rootstock (RSK)
Rootstock is one of the general purpose smart contract platforms secured by Bitcoin networks. It was started by RSK Labs to address Ethereum’s limitations and give Bitcoin more stability.
The need for an intermediary to facilitate a transaction is not necessary with RSK’s smart contracts as they are completely autonomous. RSK works with most of the major Bitcoin exchanges, enabling and completing transactions in less than 20 seconds.
RSK uses Solidity to create smart contracts and creates its virtual machines for smart contract execution. Although RSK is a public blockchain system, it operates on an account-based data system.
What are the benefits of smart contracts?
Smart contracts are reliable due to several irrefutable and verifiable characteristics. They are also well designed using automated contractual coding to require parties to behave ethically and maintain fairness in all enhanced decisions.
Determined: In this contract, each contracting party has a guaranteed copy of all terms and conditions that cannot be changed or modified in any way, thus maintaining reliability and trust in the platform.
deterministic: Smart contracts have a unique specification in that they only work for those they are designed for after meeting all the required conditions. In any scenario, the outcome remains unaffected.
Immutable: Once the information and details are deployed and confirmed by the parties, the contract cannot be changed or modified in any way; it can only be removed as long as the need disappears.
Autonomy: Smart contracts do not involve any other parties. These are made exclusively for certain parties and shared between two; there are no intermediaries involved who could disclose or authorize information. These operate through network nodes and take the flow of control away from an outside source.
Customizable: These contracts allow parties to add their custom negotiations, requirements, expectations, or progress charts and add changes before they are finally launched.
Transparent: Forming strict equity on the platform, smart contract development codes are publicly visible and stored in a publicly distributed ledger identified as a blockchain.
Self verified: Smart contract development is self-verified due to automated capabilities and blockchain technology.
What is the process of smart contract development?
Understanding smart contract development can be easier or more difficult depending on where you are in the process.
Identify agreement: Smart contracts should have their purpose, collaboration capabilities, and desired outcome related to business expansion, asset wraps, and others.
Set conditions: These contracts can be generated by the parties themselves once the terms have been fulfilled by them, including all finances, events and other specific details.
Code Business logic: Smart contracts are automatically generated and properly written as long as the conditional parameters are effectively met.
Encryption and Blockchain Technology: Smart contracts allow for more secure authentication and circulation of information between parties.
Execution and processing: In blockchain integration, once the parties reach an agreement, the codes related to authentication and verification of details are remembered for verification and secure processing.
Network updates: After the completion of the smart contract, all nodes on the network update their posted ledger and verify the details as they cannot be changed afterwards.