To most people, a blockchain system is synonymous with cryptocurrency. However, it’s amazing how the application of blockchain technology stretches into various industries and is not only limited to digital currencies. Blockchain’s properties such as distributed ledger, immutability, and data protection make it suitable for a wide range of applications in the financial sector.
In this article, we will focus on Smart Contracts application of blockchain technology and top platforms that offer this technology.
What is a smart contract?
A smart contract is a computer protocol designed to enforce the negotiation and verify the transactions digitally. This allows transaction processing on a blockchain without the need for a third party. You can exchange property, shares, or any other valuable online in a manner.
Smart contracts, just like traditional contracts follow the rules of the agreement, and they automatically enforce these rules. The blockchain system replaces the need for a third party, say a lawyer, by facilitating peer to peer transactions.
Companies, especially, ICO companies, create smart contracts on a blockchain and sell them to investors. Most people prefer investing in smart contracts than pure cryptocurrencies such as bitcoin. Unlike cryptocurrencies, smart contracts are less volatile and speculative. The development platforms, which we will review in detail, gain value as the smart contract prices elevate.
As earlier stated, smart contracts operate on a blockchain system. Let’s have a look at the top 5 blockchains Platforms that provide a base for smart contracts.
Apart from running its coin, ETH, ethereum is also famous for its tokens development features. This has earned it trust from the mainstream community with Microsoft and AWS partnering with it.
This feature makes the development of smart contracts within its blockchain system straightforward and affordable. Furthermore, it facilitates the development of decentralized applications, dubbed DApps, quite easily.
Additionally, the Ethereum Virtual Machine can run codes and programs from users for free. This nature of ethereum has made it popular among ICOs creating smart contracts.
NEO platform is a Chinese based platform and is popular in China and other Asian countries. The significant far-east population provides a good market for NEO smart contracts services making it a major possible rival to Ethereum.
However, unlike ethereum, NEO can perform quick and efficient transactions with a high throughput rate than ethereum. Additionally, it runs on a user-friendly interface enabling users to create trustless smart contracts
NEM is famous for its proof-of-importance technology. It supports users whose main aim is to initiate crowdfunds through blockchain. NEM is coded in Java, which is familiar to most programmers hence it is easy to create smart contracts code through it.
Compared to Ethereum and Stellar, Nem is more expensive but ideal for ICOs. It has excellent performance, simple and straightforward, and has a good reputation within the industry.
Stellar is one of the oldest smart contracts platforms having been established in 2014 by Stellar Foundation Development. Since its inception, Stellar has gained popularity with some industries incorporating the system on their networks.
Unlike ethereum, stellar is easier to use and but not as straightforward as NEO and NEM. It is suitable for simple ICO contracts for startup companies.
Last but not least is the Waves smart contract platform, which was launched in 2016. It is designed to address the scalability deficiencies within the mainstream blockchain industry. Just like stellar and NEM, Waves is an ideal choice for ICO tokenization, a process that takes only a few minutes. It is a perfect fit for crowd sales and requires little knowledge to develop tokens.
Unfortunately, there have been complaints about the lack of versatility from investors. This has minimized its growth and acceptance into the crypto sphere.
As is evident, there are various platforms on which you can develop smart contracts. Each platform has its merits and demerits but their major aim is providing smooth exchanges through the blockchain system.
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