In recent years one of the flurry topics is a smart contract and the blockchain application which will explode in the year 2020 and 2021 from the model of “Defi” “Decentralized Finance”, “decentralized exchange(DEX)” and also “NFT’s(Non-fungible Token)”.
The expeditious development of blockchain technology creating a new crypto world. Next-gen is a decentralized application that does not involve a third party.
The smart contract is one of the “hot topics” and it has become more popular in the blockchain industry. This smart contract revamps all the financial and business development processes.
This smart contract was introduced by “NICK SZABO’’ in 1996, the smart contract is a computer program. Which execute and control the program automatically without the need of intermediaries.
“Dive Into This Topic”:
This is the piece of code that is programmed into a blockchain and it defines a term of a particular transaction. It will execute the program and it will perform the assigned task.
By using this smart contract it allows the development of any kind of token. The token is a piece of code with a certain function and it enables the transfer of the digital assets it can read to the token holders.
The data of the smart contract is immutable, secure and also the data is encrypted on a ledger. The transaction is transparent and also it is traceable. The information stored in the block cannot be lost, deleted, or modified.
Challenges IN Smart Contract:
The smart contract allows people to connect all over the world to transact their money without the need of a third party and also reduces the cost of the middle man.
It reduces the administration and there is no risk in this contract, it could save time. This is completely safe and these are irreversible.
Processing Of Smart Contract:
This smart contract is an agreement between two parties, where it can store the information and the process of input and write down the output.
Every smart contract has a state and function. The owner’s wallet address holds some data.
We differentiate two states that are constants and states, this never be changed and this state is saved in the blockchain. The final code of a smart contract is stored in the blockchain.
Smart Contracts Platform:
Here the smart contract is developed and established in various blockchain platforms. Developing a smart contract each platform has a programming language and also has a security level.
Bitcoin — The public blockchain platform used in the process of a cryptocurrency transaction, but it has limited computing capability. The Bitcoin scripting language is also very limited.
Ethereum — This is the first blockchain platform, with the help of “Turing-complete Virtual Machine” it is customized and this is called an “Ethereum Virtual Machine (EVM)”. This is a runtime source of a smart contract.
Solidity — This is the high-level programming language that is used to write a smart contract. Nowadays the ethereum has become more popular. It is used to design various kinds of “dApp”.The solidity of the programming language is used to write an ethereum smart contract.
Where would it be used?
This smart contract is used to perform functions in a variety of industries. The smart contract used in relevant areas such as,
- Use in the form of Renewable energy.
- Track the path of Goods.
- Decentralized Storage.
- Logistic Process.
Smart Contract Benefits:
- Transparency and Accuracy
- Security
- Challenges
- Trust
- Legal
- Efficiency
- Speed
Conclusion:
In this digital world, the smart contract has had more impact and it has become more useful. We see a few examples of a Smart Contract.
https://clarisco.com/blockchain-smartcontract-application-development
