Blockchain smart contracts explained

In our article on video games as NFTs and introduction to blockchain technology, we’ve mentioned smart contracts. But what exactly are those smart contracts? And what difference do they make for you? That’s what you’ll find out here.

 
  • What are smart contracts?
  • What smart contract platforms there are
  • Which blockchains support smart contracts

What are smart contracts?

Smart contracts are layers of code embedded directly on a blockchain that make it easier to execute transactions. They speed up processing times, and simplify agreements usually requiring a third party.

 

Since blockchain is based on majority consensus, smart contracts are executed when blocks reach a predetermined resolution. Terms become set when the blockchain is created. This process means every change made to a blockchain is executed exactly the same.

Smart Contracts Blockchain

A foundation for smart contracts, solidity programming is the language used. In addition, cryptocurrencies like Ethereum store smart contracts directly on its blocks (unlike Bitcoin). This makes NFT smart contract execution fast and straightforward. 

To better understand how smart contracts work, it’s useful to dive into the technology behind them. If you’re wondering which crypto has smart contracts, read on to find out.

List of smart contract platforms & tools

Improving the process, there are platforms for developing blockchain agreements that provide different features and benefits. A few of the better known are:

 
  • TRON
  • OpenZeppelin
 

TRON

TRON smart contract technology includes security features. Based on Ethereum, it’s compatible with other cryptocurrencies like Bitcoin.


With Ethereum topping the list of smart contract platforms, it remains a leader in the blockchain space.

Tron - Blockchain

OpenZeppelin

 

Adding safeguarding, OpenZeppelin contracts utilise an open-source platform to develop decentralised applications (dApps)

 

 OpenZeppelin contracts are databases of smart contracts built on Solidity and Ethereum. They’re also vetted, meaning OpenZeppelin acts as a quality control layer.

 

Smart contracts developed with OpenZeppelin are useful for:

  • Controlling access
  • Defining ownership
  • Setting parameters
  • Monitoring token value

Payments & gas fees, like with NFTs. 

Which blockchains support smart contracts

In addition to Ethereum, Solana, Polkadot, Ergo, Algorand, and Cardano all have smart contracts as well as value on their blocks.

 

With Polkadot cited for its interoperability (ability to easily communicate with other blockchains), and Ergo for its unique no gas fee approach, the crypto market is filled with options.

Cardano

If you’re looking to invest in crypto, and find Bitcoin out of reach, it’s worth considering these. Also, as mentioned before, Bitcoin doesn’t have smart contracts on its blocks. There’s definitely a lot to cover with smart contracts.

 

Interested in innovation in your job as well? Get in touch with our experts for an offer you can’t refuse.

  

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