We have the power to create smart contracts and decentralized applications that run on top of Blockchain technology. That power is at our fingertips. Let’s get educated and start building!
Blockchain is one of the most exciting innovations in recent years, and new cryptocurrencies are born daily. The technology powers a new way to connect people, conduct commerce, and conduct transactions over a secure platform where anyone can finish anyone else’s business quickly, securely, and transparently with no middlemen involved from day one.
And yet, despite the technology’s potential and widespread implementation, there still needs to be more clarity about what it does and how it does it.
The adoption of Blockchain technology requires a shift in thinking. It requires adopting a new paradigm for conducting transactions, creating contracts, and moving assets from one party to the other.
Blockchain is not just another database. It’s important to distinguish between distributed ledger technology (DLT) that underlies blockchain applications and a “blockchain” as an application.
Cryptography researcher Ralph Merkle first introduced distributed ledger technology in 1979. It is now catching up with the hype, gaining more practical importance as people learn what it can do.
Blockchain represents a new paradigm for conducting activities and creating smart contracts. Smart contracts are codes that run on top of DLT on a distributed network and have the feature of self-executing when certain conditions are met or once they reach some predetermined time limit.
How to create smart contracts in blockchain?
Connect to blockchain:
The first step is to connect to a blockchain network. There are several ways to connect, such as:
Creating a Solidity contract (smart contract) and allowing anyone on the network to read, write or execute it. This option is the most secure but can be used only by experienced developers. By creating a side chain and allowing trusted nodes on it (a trusted node is usually a provider of computing resources).
You can create an account that automatically has access to your smart contracts as soon as they’re created. This is a good option for those who want to avoid the learning curve of Solidity programming and also want to limit access to contracts.
By using a decentralized oracle that can read data from external sources. Oracles represent trusted third parties that can confirm events or be processed by a smart contract. This option is particularly useful when you want to use your smart contract in conjunction with existing systems, platforms, or other applications, where the code may not reside on the same platform as your application.
Choose a test network:
Blockchain networks are different. Bitcoin runs on one blockchain network, and Ethereum and other platforms run on theirs. They are all great places to test your smart contracts before connecting to the main network.
Some providers, such as Kaleido, offer a secure testing environment where your use case can be simulated in a sandbox environment using dummy data.
Fund your wallet:
You can start experimenting with smart contracts by putting some funds in your wallet as test tokens, so you can play with the code and get used to the interface.
Complete your smart contract code:
As mentioned above, there are several ways to create a smart contract, but they all start with the same core elements. You must write the rules that will be executed when conditions are met. When you’re done writing your smart contract code, you can deploy it on the blockchain as a simple transaction.
Launch your first DAPP:
Now that your smart contract is deployed on a blockchain network, it’s time to create an interface so you can use it and build something useful with it.
The simplest way to create a smart contract is by getting a blockchain explorer. This service allows you to look at the current state of your contract and get the details of how much funds it has and how many transactions have been made.
Another thing you can do is create an Ethereum application that “interacts” with your smart contract using Web3 libraries or its API. For example, for uploading documents, interacting with other smart contracts, and exchanging data, you might use libraries like Truffle or MetaMask.
Deploy your contract:
Once you’re ready to deploy your smart contracts on an entire network, you need to find the right place to put them. Once again, there are many options, such as:
By creating a smart contract on Ethereum Testnet. By creating an account on Ethermint and testing a smart contract there. By creating an account on Ethereum Sandbox. You can use a side chain to allow trusted nodes and connect to them.
However, this option is quite tricky because your smart contracts’ security would rely on your private keys’ security. You can also use a third-party service like Blockstack that lets you deploy your contract using those credentials and allows you to connect directly to a marketplace or marketplace app.
Test your smart contract:
To test your code, you should have a decent understanding of Solidity. This online site is worth checking out for a basic understanding of writing and testing smart contracts.
You can manually verify your contract by running the code from Github or Petal. This way, you can test the Solidity interface and see if everything works as expected.
Once you’re satisfied with your smart contract, it’s time to connect it to the real world and make it autonomous.
Start making money:
Now that your smart contract is working correctly, you can begin testing it in real-time (by making a transaction or sending an Ether transaction). You can integrate other applications, platforms, or systems to use your smart contract and its opportunities.
Selling physical goods, allowing people to pay you with their credit cards, charging fees for certain key actions, or giving access to other services are just a few examples of how to use smart contracts.
Smart contracts are a new way of working with smart contracts. They allow you to create virtual agreements in cyberspace that can be executed automatically based on certain conditions once those conditions are met or when the time runs out.
Smart contracts have many different use cases and can be used to change and improve how we trade physical items, communicate data, manage payments, and much more.
Blockchain technology is here to stay, and smart contracts are a part of it. Whether in finance, healthcare, a government agency, or another sector of the economy, you should know how smart contracts work and how to benefit from them.