A smart contract is one of the most important parts of blockchain technology.
What Is A Smart Contract?
Smart contracts are written programs that facilitate a given order for agreement, or payments on the blockchain.
The advent of smart contract development began in 1994 with Nick Szabo, a computer scientist, and cryptographer who wrote the first smart contract proposal, the need for smart contract development was to eliminate intermediaries and financial institutional policy.
How Does the Smart Contract Work
A smart contract is a self-executing program built with a consensus mechanism and is therefore immutable by creation and irreversible when deployed by the user transaction, when an order is made the codes are sent to an address on a Blockchain, and the transaction gets verified by several order blocks and once the transaction is concluded by blocks the smart contract is initiated and submitted, smart contract executed transforms on the virtual machine (VM) which is the state machine for executing codes of smart contracts.
Smart Contract Security
Blockchain smart contract creation is complex for a single person creation, it requires verification to ensure the use and security of a smart contract it must be Audited, this process requires a line-by-line inspection of codes to avoid vulnerabilities in the code, which prevents it from potential security exploits, this also comes with a cost.
Use Of Smart Contract
In every blockchain technology, there is a need for a smart contract which are used for the creation of decentralized applications (Dapps) with other sophisticated functionalities, the most significant part of a smart contract is the transparency, and the ability to create decentralized platforms or protocols, most blockchain smart contract transactions are made visible on the web using a web scan, for example, with the Ether-scan web application user can see the transition time/date and verify blockchain activities.
Conclusion
There are various use-cases for smart contracts on the blockchain. They are used in the defi sector, games, longevity, digital identity creation, NFT, and DAO sectors where agreements made on the blockchain are signed using smart contracts, most especially, on how funds are spent. Smart contract developers are the most respected in the space, being a smart contract developer opens a lot of advantages for individuals to get good-paying jobs on the blockchain.
The most used smart contract programming language is known as Solidity, an Ethereum-based blockchain program that is used by top protocols on the blockchain, there are various other languages such as Rust, C/C++ used for Solana, Haskell/Plutus used for Cardano, and (TEAL) Transaction Execution Approval Language used for Algorand blockchain.
Leave a Reply