What are smart contracts? This has been creating a huge confusion among a lot of people. In simple terms, smart contracts are a pre-written clause that acts as guidance for an action to take place. The biggest thing to keep in mind is that these are on the Ethereum blockchain or just any blockchain.
With the advancement of technology, there is a surge in the number of ethereum blockchain smart contract development companies. This might sound irrelevant here. However, I am trying to say how one betterment of technology helps the economy too.
Comparing ethereum blockchain smart contract development with a vending machine.
The money you put in is the terms and conditions that tell the smart contract to act in a certain way if they are met.
The product you get for the money is the result of the solution for any dispute or challenge. Simple?
Now, how are ethereum smart contracts any different from the regular ones?
Firstly, ethereum blockchain is a developer-friendly platform. Unlike the Bitcoin’s blockchain platform that is coin-centric (I really don’t know if that’s a word, but I mean it is very favorable for coin development. Please put up with me until the end).
- Bitcoin’s language is restrictive, but ethereum enables the developers to write their own smart contracts.
- This facility is also called autonomous agents.
- We term it as Turing-complete as it acts as a pillar for many computational instructions.
Other than these important differences from Bitcoin’s blockchain, Ethereum smart contract is similar in the following ways.
- Multi-signature required to perform certain transactions. This way a minimum number of people need to agree for funds to be transferred.
- Manage treaties between two parties when required.
- Be of great use to other contracts (just like how a software library works)
- Store crucial information about a lot of matters.
Now, if you are looking to develop your business with smart contracts, ask me for ideas. I got a ton stored in my drives. Do post them in the comments below.