Whether it’s a contract for employment, a lease or mortgage agreement, or a warranty on a new television, contracts and agreements are at the heart of many everyday transactions. Smart contracts have the advantage of being able to be written and programmed without the intervention of a third party to run on their own.
When a death certificate is issued, a life insurance policy can be paid out without the beneficiaries having to file a claim. Alternatively, as soon as payment is received, the documents for a property purchase can be sent. A mortgage loan may be monitored on the blockchain, and the property can be released after the amount is paid in full.
Smart contracts can change our lives
Smart contracts have the ability to change our lives.
Smart contracts are one of the reasons why blockchain technology can be so powerful, but they’ve just scratched the surface so far. If platforms are to obtain universal acceptance and have an impact on our daily lives, they must be faster, more secure, scalable, and accessible.
They’re a driving force behind the emerging decentralized finance (DeFi) industry, which comprises a wide range of applications that eliminate traditional financial middlemen. They’re also required for decentralized apps (dApps) built on smart contract (or programmable) systems.
Here are a handful of the best smart contract platforms to keep an eye on, in no particular order.
1. Ethereum (ETH).
Ethereum was the first cryptocurrency to implement smart contracts. As a result, the great majority of apps employ it. According to State of the dApps, around 80% of DeFi’s apps run on the Ethereum network.
It, on the other hand, has become a victim of its own success. Developers are unhappy with high gas (transaction) fees because the network is overcrowded and has a large carbon impact. It’s like a massive, expensive smoke-blowing engine on the rise. Other blockchains are also incompatible with Ethereum.
Eth2, a project aimed at addressing some of these concerns, is now in development, although it won’t be completed until 2022 at the earliest. Other cryptocurrencies, like as Polygon (MATIC), offer so-called Tier 2 solutions, which sit on top of the Ethereum network and execute transactions faster and more cheaply.
2. Solana (SOL)
With 50,000 transactions per second, Solana is the quickest cryptocurrency on the market (TPS). Ethereum, on the other hand, currently operates at a pace of 15 to 45 transactions per second (TPS), which is expected to increase dramatically once Eth2 is released. Solana only asks for a smidgeon of a fee.
To expedite transactions, it employs so-called “historical evidence.” Without getting into technical intricacies, time stamps in transaction records ensure that the computer does not waste time verifying transactions that have already been completed.
On the Solana system, almost 400 projects are active, including the USDC Stablecoin, which is gaining popularity. Both Ethereum and Solana are supported by USDC.
3. Polkadot (DOT).
Polkadot is noted for its adaptability, while Solana is known for its speed (how well it works with other platforms).
Polkadot makes use of parachains. They work in parallel with the main blockchain, allowing transactions to be completed faster. Instead of using the main blockchain, smart contracts are implemented on parachemes.
4. Ergo (ERG)
In contrast to the other cryptocurrencies on our list, this smart contract platform does not charge for gas. Ergo is designed to handle more complex contracts, which may appeal to the DeFi business.
It isn’t yet listed on many of the main cryptocurrency exchanges, so it will have to work hard to gain traction.
5. Alogorand (ALGO).
Alogorand, like other cutting-edge smart contract systems, combines low costs, scalability, and speed with security. The initiative’s brains behind it include Silvio Micali, an MIT professor who emphasized the language’s accessibility.
Algorand smart contracts can be built in a number of different computer languages. One of them, Clarity, is designed to make it straightforward for customers to understand what a contract will do, even if they aren’t skilled coders.
6. Cardano (ADA).
Cardano should not be included on this list because its smart contract features will not be available until September. Nonetheless, the long-awaited update has propelled Cardano into the top three cryptocurrencies in terms of market value, so it’s worth looking into.
Cardano’s growth approach is steady and methodical. Each level has been thoroughly tested and peer-reviewed, meaning that introducing functionality that others have used for years has taken some time. When it does launch, though, it will very certainly catch up quickly.”
Investing in smart contract platforms
Smart contracts and cryptocurrency are an interesting area. We don’t know how this new industry will evolve, but digital currencies have a good chance of not only surviving, but thriving in the long run.
The bulk of these coins may be obtained on the most famous cryptocurrency exchanges if you wish to invest. Always do your own research about this and other cryptocurrencies in this area, and only invest money you can afford to lose, as cryptocurrency investments are all dangerous.
The two most serious risks on the horizon are regulation and technological developments. Increased regulation might have an immediate impact on DeFi and the entire bitcoin industry. Given the speed with which technology can evolve, quantum computing is also worth contemplating. It may reach a point when the security of various blockchains is jeopardized.
Right now, smart contracts are a fascinating business, and we’ve barely scratched the surface of what they can do.