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Smart Contracts, like traditional contracts, are legally binding agreements between two or more parties, signed using software. A specified action is carried out on the smart contract once preset terms are met. For example, a smart contract could automatically be executed after someone sends money to you, when a certain date is passed, or when a certain event occurs.
Understanding Smart Contracts
Smart contracts are used to automate the execution of an agreement between parties, that way the involved parties of the contract can rest assured the contract is upheld regardless of unexpected occurrences.
Smart contracts are also domiciled on the blockchain and follow “if/when…then…” prompts, which are encoded onto the blockchain. This means a smart contract is recorded in the blockchain, making it unalterable and permanent.
Over the years, several smart contract-hosting platforms have emerged to carve out a chunk of the smart contract industry, considering the smart contract sector is one of the most promising niches in the crypto and blockchain industry today. However, analysts believe that all the smart contract blockchains will eventually consolidate into two or three super smart contract platforms in the coming years.
Currently, smart contracts are useful and can be adopted in many facets of life and industries, including data management, supply chain management, mortgages, trade finance, escrow, insurance, healthcare, elections, real estate, and so much more.
Most Notable Smart Contract Platforms
Below are some of the most promising smart contract platforms capable of remaining among the “last man standing” when the projected consolidation happens:
Smart contracts cannot be mentioned without Ethereum. This platform was the pioneering smart contract blockchain and remains the top platform for the sector to this day.
Created in 2017, Solana is one of the most innovative smart contract platforms and is on the list of potential platforms to overthrow Ethereum in the coming years.
Although relegated as one of the “smaller guys” in the smart contract and decentralized finance (DeFi) space, Algorand’s contribution to the smart contracts space cannot be undermined. Algorand is also well-known for its role in central bank digital currencies (CBDCs).
Avalanche is another smart contract platform seen as the underdog in the race for blockchain dominance. However, Avalanche boasts the quickest smart contract platform in terms of transaction processing and finalizing.
Binance Smart Chain
BSC, created by the largest crypto exchange on the planet Binance, is unarguably one of the forerunners of smart contract dominance. BSC offers significantly lower smart contract transaction fees and notable speeds.
Cardano is the “latest kid on the block” in the smart contract space after its blockchain became smart contract compatible late last year. Irrespective of its late entry into the sector, Cardano is seen as one of the most likely to surpass Ethereum because of its numerous network benefits and attributes.
Cosmos, with its self-acclaimed “internet of blockchains” attribute, is one of the smaller smart contract platforms on the block today. Needless to say, this blockchain offers a punch with its smart contract accessibility.
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