What is a Smart Contract? Top 5 Smart Contracts that Revolutionize Decentralized World.

Have you ever imagined how it feels when your work gets completed automatically? That too without you entering the amount or checking the clauses again and again! Well, it is possible with Blockchain Smart Contracts. Yes, Smart Contracts stored in Blockchain can work for you and make the process more reliable. They can do automatic transactions if predefined conditions are met accurately. This makes human work easy and at the same time makes it secure, transparent and immutable.

What is a Smart Contract?

A Smart Contract is a coded program that works automatically when the predefined conditions are met. It works on the Blockchain and hence ensures trust, transparency, and reliability among two parties. Smart Contracts have been coded in a way that they don’t need any intermediaries like banks, lawyers, etc. They work automatically when everything is in sync. Once the conditions are set and everything starts to work, there are fewer chances that you can alter it.

Benefits:

1. Secure: Smart Contracts are highly secure, as once the program is coded, no one can alter it, and hence it proves to be secure and reliable.

2. Cost-effective: Smart Contracts remove the middleman and work on their own. This way, they eliminate intermediaries and become cost-effective.

3. Transparent: As every transaction is recorded on the Blockchain network, they become transparent.

4. Immutable: The coded contract can’t be altered by anyone once it is made with the concern of both parties.

Limitation

1. Legal restriction: Some countries are still evolving in terms of technologies and updates. For the same reason, there are some legal restrictions in the application of smart contracts around the globe.

2. Vulnerability: As they are coded, at times they may be affected by vulnerabilities, breaches, and cybercrime.

Top 5 Smart Contracts

1. Ethereum Smart Contract: Ethereum was launched in 2015, and after that, it changed the world of Blockchain and how transactions were made on it. Earlier, Blockchain was used for Bitcoin, but Ethereum extended its possibilities by creating and executing the decentralized code. As it is established as the pioneer, it is used by many developers to create and execute coded contracts.

Key features:

(i) It can handle the power of 70% of DApps.

(ii) Developers can create contracts in various programming languages like Solidity and Vyper.

(iii) Ethereum is constantly updating its services and platform for user ease and improved user experience.

Use Cases:

1. Supply chain

2. Gaming

3. Healthcare

2. Solana Smart Contract: Solana proves to be a cost-effective smart contract in comparison to Ethereum. It has a speed that it can process over 65,000 transactions per second. Its Proof of History (PoH) consensus mechanism makes it stand out from others.

Key features

(i) Transaction speed that can do over 65,000 transactions per second.

(ii) As it is cost-effective, it is helpful for gaming and small industries.

(iii) It is easy to integrate with Web 3 wallets and tools.

Use cases:

1. Decentralized application

2. Decentralized exchange

3. Cardano Smart Contract: Cardano Smart Contracts are different from other smart contracts as they work on a research-based peer-reviewed framework. It doesn’t work like usual smart contracts that constantly bring updates. Instead, it is grounded in its peer-reviewed research and scientific principles that offer sustainable results in the long run.

Key features

(i) Research-based scientific approaches to keep vulnerabilities at bay.

(ii) It can handle high global traffic.

(iii) It uses the Proof of Stake (PoS) consensus mechanism.

(iv) Uses the Plutus programming language.

Use Cases:

1. Legal

2. Identity Verification

4. Polygon Smart Contracts: Polygon has been specifically made for scaling Ethereum. Polygon Layer 2’s sole aim is to improve Ethereum’s throughput, reduce the high-level gas fee, and provide cost-effective, secure, reliable smart contracts.

Key features:

(i) It has all the security measures of Ethereum and reduces the carbon footprint comparison of layer 1 solutions.

(ii) Seamless connection with Ethereum and other chains.

(iii) Unlike Ethereum, it can handle up to 7200 transitions per second.

Use case:

1. Opensea

2. Decentraland

5. Binance Smart Chain (BSC) Smart Contract: It has become one of the most popular Blockchain platforms for being cost-effective, scalable, and EVM-compatible. Binance understood the problems of high traffic and high financial charges and created a platform that addresses both of these issues.

Key features:

(i) Offers easy integration with other chains.

(ii) Faster transaction confirmation across different chains.

(iii) It proves to be cost-effective and hence attracts new developers.

Use case:

1. Healthcare

2. Corporate Governance

Conclusion

In the digital world, everything is possible. The best example is a Smart Contract. It works automatically and eliminates time, money, and human effort, and makes the process more transparent, secure, and improved. There are many Smart Contracts that offer many of the benefits. But the top 5 Smart Contracts have been mentioned above. They fulfill all the user requirements and establish a trustworthy foundation. If you have any confusion regarding anything, contact us, and we will be happy to help you.