Contracts and agreements are enormous parts of our lives. They not only make our daily interactions possible, but they also ensure that everyone is on the same page without fail. Automating agreements with smart contracts is the best thing that’s happened to the blockchain. Decentralization allows for the complete automation of agreements. That must be met without any third-party involvement.
For example, when a policy is issued, beneficiaries don’t need to file a claim. Or when a house sells, the deed is transferred as soon as the sale is complete. Do you want to release your property but don’t know where it is? Track it on the blockchain and have peace of mind that when you sell, a mortgage can be released.
Smart contracts can transform our lives
Smart contracts are one of the main features of blockchain technology and are only starting to reach their potential with some simple improvements. They still need more modules for security, so there’s still plenty of progress to be made.
These AI assistant platforms are responsible for the rapidly developing decentralized finance industry. While these applications cut out the middleman. They are also key for new decentralized computing capabilities.
Here are some top smart contract platforms to watch, in no particular order.
Ethereum has allowed a significant amount of companies to use their smart contract and run applications on it. The State of the dApps report states that 80% of all decentralized apps (dApps) are running on the Ethereum blockchain.
The network has been successful in many ways, but it is also a victim. It was built to be highly scalable but still has congestion issues. It’s a large environmental impact and increases costs for developers. Gas fees are high because the transaction fees are so high. It can be a bit frustrating to use Ethereum sometimes because it doesn’t work well with other blockchains.
They offer a solution that improves on some of the issues Ethereum has. Unfortunately, it won’t be done and completed until at least 2022. Other cryptocurrencies, like Polygon (MATIC), also have layer 2 solutions that are even more advanced than Ethereum but they don’t seem to be as well-known.
Solana is significantly faster than other cryptos. It creates up to 50,000 transactions per second (TPS) which is far greater than ETH or any other coins. With that in mind, it has much lower fees which makes it great for day trading.
It uses a hashing algorithm to process transactions. It avoids computing power by verifying and storing timestamp information. This means it doesn’t waste processing power checking transactions that happened in the past.
Solana has about 400 projects running on its system, including the rapidly growing stablecoin USDC. USDC runs on both Ethereum and Solana.
Solana stands out for its speed, but Polkadot stands out for its interoperability (how well it works with other platforms). This is the crypto that hangs out by the coffee machine and chats with everybody else.
Polkadot uses something called para chains. These run parallel to the main blockchain and allow it to process transactions faster. Smart contracts run on the para chains, not the main blockchain.
This smart contract platform doesn’t charge gas fees, which sets it apart from the other cryptos on this list. Ergo is designed to process more complex contracts. Which could appeal to the Defi industry.
However, it’s not yet listed on many major crypto exchanges and will have to work hard to build its profile.
Like the other new smart contract platforms, Alogorand promises low costs, scalability, and speed, without compromising security. The man behind the project is MIT professor Silvio Micali, who, among other things, prioritized making smart contract language accessible.
Developers can use different programming languages to write smart contracts on Algorand. One of them, Clarity, is designed to make it easy for users to understand. What the contract will do, even if they are not a season, developers.
Strictly speaking, Cardano shouldn’t be on this list, because it will only launch its smart contract functionality in September. However, it’s worth watching because news of the long-awaited upgrade has pushed Cardano into the top three cryptos by market cap.
Cardano takes a slow-and-steady approach to development. Each step is peer-review and carefully tested. Which means it has taken a long time to introduce functionality. That others have been running for years. However, the expectation is that when it does launch, it will quickly catch up.
Algorand is a self-contained, decentralized, blockchain-based network that supports a diverse set of applications. It’s also one of the newest smart contract platforms, offering minimal prices, scalability, and speed while maintaining security.
Elrond is a blockchain protocol that uses the sharding process to provide incredibly fast transaction rates. It describes itself as the new internet technology ecosystem, which incorporates fintech, decentralized finance, and the Internet of Things. It has a transaction rate of 15,000 transactions per second, which is slower than Solana but much faster than Ether.
The Ergo platform seeks to provide a fast, secure, and simple way to construct financial contracts that are both beneficial and long-lasting. The platform does not charge any gas fees, which distinguishes it from the rest of the market’s cryptocurrencies.
Tron is a blockchain-based operating system that promises to make blockchain technology more secure. It is one of the most popular solutions for developing decentralized applications and is best described as a decentralized platform centered on content sharing and entertainment.
Putting money into smart contract platforms
Cryptocurrencies with smart contracts are a fascinating field. We don’t know how this embryonic market will develop, but these digital currencies have a high possibility of not only surviving but also performing well in the long run.
If you decide to invest, the majority of these coins may be found on the most popular cryptocurrency exchanges. Always do your own research on this and other cryptocurrencies in this industry, and only invest money you can afford to lose, as all crypto investments are risky.
Regulation and technological innovation are the two most significant threats on the horizon. Increased regulation might have an immediate impact on Defi and the crypto industry as a whole. Quantum computing is also worth paying attention to, given the pace with which technology might advance. There may come a moment when the security of numerous blockchains is jeopardized as a result of this.