The use of smart contracts has increased the popularity of blockchain technology. The increased interest in blockchain technology has significantly impacted the value of cryptocurrencies that can execute smart contracts.
The terms of a contract are kept on the blockchain by “smart contracts,” self-executing pieces of computer software. Upon the completion of the contract’s important parameters, the program starts immediately, thereby eliminating intermediaries. Smart contracts also drastically increase transaction speed while substantially lowering transaction costs.
Innovative contract platforms allow, test, and execute smart contracts. They provide us access to the top blockchain framework for smart contracts, services for creating and testing smart contracts, and hosting for smart contract deployment and execution.
Since the advent of this technology, organisations have been researching smart contract applications and their potential for creating D-apps (decentralised applications). Smart contracts can speed up procedures in various industries that depend on contractual connections, including blockchain for nonprofits, trade finance, insurance, and construction.
Even though businesses often prefer to experiment with new technology in pilot projects built from scratch, it is more practical to employ already-existing blockchain platforms that allow smart contracts. The fees assessed by the companies that provide these platforms are a function of the electricity used to carry out the installed smart contracts.
What Are The Top Smart Contract Platforms?
Even though developers will use open source on most platforms, it is necessary to check whether enough experts are eager to build. They will require committed developers, most of all, to maintain the system, find faults frequently, and start making the platform. The most widely used blockchain for smart contracts is still in its infancy and has a long way to go.
On the other hand, a reliable smart contract platform must be simple and not call for any advanced technical knowledge. It is generally agreed upon that this is the main obstacle to widespread adoption. A project must therefore focus on developing a user-friendly service if it intends to appeal to a broad audience.
1. Ethereum
Ethereum was the world’s first platform for smart contracts and is still the one that programmers use the most. Since being online in 2015, the platform has enabled the deployment of apps ranging from smart-contract-based insurance to initial coin offerings (ICOs).
Since its introduction in 2015, Ethereum has dominated the smart contract industry. Vitalik Buterin’s idea hasn’t been outdone despite multiple attempts to become “Ethereum killers.” During the previous bull run, even the famed NEO ecosystem, once known as Antshares, missed the chance to establish itself as a critical centre for smart contracts.
The Ethereum Virtual Machine (EVM), a reportedly Turing-complete system, resides on Ethereum, a Proof of Work blockchain network. Due to its ability to closely resemble an ideal machine, it is widely known as the world’s computer.
Developers create EMV apps using Solidity, an object-oriented programming language for creating smart contracts. Similar to how it was for ICOs during the previous bull run, Ethereum is now a hotspot for both Defi projects and apps. More ecosystems are now vying for a piece of the Defi pie, but none of them has significantly hurt Ethereum’s position.
2. Polkadot
Gavin Wood, a co-founder of Ethereum, is the man behind Polkadot. After learning that ETH is not at all the secure and scalable protocol that its creators had intended, the former CTO decided to create his blockchain network.
By market capitalisation, Polkadot, a blockchain network created by the software development firm Parity Technologies, is now the fifth-largest cryptocurrency project.
An essential component of this system is the Relay Chain, which controls the network interoperability of parachains and part threads. Since parachains allow developers to create their blockchains with distinctive currency and governance structures, Polkadot is particularly alluring.
Polkadot is well-known for hosting parachains on its blockchain network. It suggests that the platform might manage many chains inside an active blockchain, a process known as sharding in more recent terminology. Sharding scales blockchains, as was already mentioned, allows them to process more transactions than they usually can.
3. EOS
Despite having a bad image for being very centralised, the EOS blockchain network continues to compete for the top spot in the smart contract ecosystem. While EOS is not yet the market leader, it is nevertheless an excellent option for any serious cryptocurrency enthusiast to consider.
Like its earlier rivals, EOS runs on its version of the Delegated Proof-of-Stake consensus algorithm (DPoS). According to the developers, staking allows their network to process millions of transactions per second. The technique also produces blocks more swiftly and inexpensively.
EOS leverages WebAssembly (WASM) as its virtual machine to carry out intelligent contract execution and C++ to generate smart contracts. As a result of the developers’ cosy software environment, EOS finds it exceptionally easy to onboard new developers.
4. Stellar
Stellar is one of the original, having been founded in 2014. The Stellar Development Foundation maintains it, and it has repeatedly been praised as one of the most intriguing blockchain startups accessible. In 2014, Jed McCaleb (one of the creators of Ripple) launched Stellar.
As the sole non-Turing complete platform on our list, it is only suitable for simple, innovative contract use cases like initial coin offerings (ICOs) or plain escrow contracts. However, Stellar’s constrained application space makes it one of the best exchange platforms. Every other innovative contract platform outperforms Stellar in terms of transaction speed, cost-effectiveness, and security.
A slew of recent good news articles about large firms choosing to incorporate the Stellar platform into their present infrastructure has convinced industry observers that the Stellar network is taking off.
5. Corda
Corda focuses on applications for digital currency, as opposed to Ethereum, which has a wide range of applications. It is a platform for storing distributed ledger historical data on digital assets. But can I use Corda and smart contracts together?
The Java Virtual Machine is the foundation for Corda intelligent contracts, which leverage high-level programming languages like Java and Kotlin (JVM). Corda is Turing incomplete in the meantime to support verifiability. Corda also employs a transaction-based data model.
Private platforms, which enable businesses to create their network for securely exchanging digital assets, are typically supported by Corda. The developers can establish Consensus quickly on private blockchain platforms. The consensus algorithm employed by Corda is called Raft.
Why Is Smart Contract Development Important To Businesses?
One of the most significant issues businesses face is a lack of trust when interacting with third parties. Companies take precautions and spend a lot of time and money using intermediaries to settle conflicts because of a lack of confidence and openness.
By eliminating the middleman when the contract terms are clear to all parties, smart contracts can be advantageous. These contracts make use of blockchain technology to improve two-party communication and trust. They also make it possible to create open, comprehensible arrangements.
Conclusion
Smart contracts are an exciting area of the cryptocurrency industry. It is unclear where this market will go in the future. However, there is a significant likelihood that these digital currencies will survive and grow over time.
More businesses will adopt technology as it develops to cut costs and expedite secure transactions. When contract details are made available to the public, and electronically, smart contracts can function as middlemen.
