DeFi is the future! And these five best smart contract platforms have got this future all safe and secure.
The digital world is moving towards decentralization with an unprecedented speed. And with massive advent of decentralized transactions taking place everyday, it is imperative to promote technology that keeps a check mechanism between traders. This is where smart contracts come in the picture.
You might have heard the term “Smart Contract” resonating widely among crypto and NFT afficionados. And while you might not be well aware as to what it exactly means, you must. Because smart contracts are the way ahead, the future of how investors and traders would work together.
Smart Contracts are already the backbone of all the decentralized transactions taking place. And with the increasing popularity of cryptocurrency, they are on their way to being adopted for real life operations too.
We are soon going to discuss the five best smart contract platforms for the DeFi users. But before that, we must understand what the term exactly means.
What are Smart Contracts in blockchain?
Smart contracts are the way for users on blockchain to maintain agreement while carrying out transactions. They are automatically generated contracts that define legal terms of agreement between buyer and seller on the blockchain. These trackable codes and agreements exist on blockchain network and are irreversible in nature.
These contracts are the way to maintain trust while trading between anonymous parties despite the absence of any central authority overlooking the enforcement.
Now that we know what Smart Contracts are, let’s quickly jump to the 5 best Smart Contracts on the blockchain.
5 Best Smart Contract Platforms On Blockchain
This comes as a no brainer. Anybody who knows the blockchain mechanism inside-out would say Ethereum in a breath while mentioning best smart contracts. It is one of the oldest and most efficient smart contract platforms that uses Ether or ETH as its default cryptocurrency. Founded in 2013, there are plenty of reasons why it is highly trusted by the users- safety, support and standardization, to name a few.
Some of the features of Ethereum smart contracts that stand out are-
- Tokenization and Permissions
- Convenience of setting up
- Security and Privacy
- Regular upgrades and development
- Developer-friendly guidelines.
Cardano is another smart contract that was created by Charles Hoskins, one of the founders of Ethereum. And therefore, one can expect plenty of similarities with a few exceptions. Hoskins created Cardano as an anecdot to the scaling problem of Ethereum down the line. This one of the best smart contract platforms aims at removing the hurdle of scalability, sustainability and interoperability by the means of its PoS (Proof of Consensus) algorithm.
PoS consensus is a kind of blockchain algorithm that is a lot like Proof of Work algorithm that works on consensus model. The only difference between the two is that it does not involve any miners.
If I have to sum up the success factors of Solana in one word, it would be its speed. After a meteoric rise since its creation in 2017, Solana has went on to become fifth largest crypto my market cap, thanks to its lightening-bolt speed. This smart contract platform is capable of executing whopping 50,000 transactions pers second while Ethereum can do only 13.
This striking speed is the result of the Proof of History (PoH) verification protocol. Solana’s speed is the reason why it is becoming highly preferable platform for the NFT gamers.
Another edge that Solana has over Ethereum is the cost. Its transaction fee is currently priced as low as $0.001. However, it only bears 200 nodes, reducing its points in terms of decentralization in comparison to Ethereum.
Another smart contract platforms built by one of the founders of Ethereum, Gavin Wood. Polkadot enjoys a reputation for its interoperability. This is what makes it one of the best smart contracts for metaverse as their is currently a dearth of blockchains that can interact with each other. The ‘Layer Zero Solution’ offered by Polkadot is the technology that bridges the gap between multiple chains.
The architecture of this smart contract platform is its biggest x-factor. Run on the Proof of Stake protocol, it is reputed for its pros such as experimentation, scalability and interoperability and stands out due to its Parachains feature.
A comparatively new smart contract platform, Stellar exhibited meteoric growth in 2021. And there is no stopping, analysts are highly bullish on the future of this blockchain. Since it is still in its initial stage of popularity, Stellar is comparatively cheaper. One of the most defining feature of this smart contract platform is that it allows transactions with multiple digital currencies like bitcoins, dollars and pesos.
Along with the decentralized database, Stellar also allows multi signatures, enables multiple transactions simultaneously and is an open-source network.