Smart contracts are automatically generated contracts with the agreement terms between buyers and sellers written in codes and stored in a blockchain. With the growth of advanced technology, many companies & businesses are gradually moving towards this. The reason is that it holds through the end of any business bargain. It makes business running transparent, easier, and significantly cheaper.
Since it became a thing, many industries and business sectors have explored this platform. The reason is that it efficiently streamlines business operations for many companies that rely on contractual relationships. To create a smart contract, it’s best to rely on existing blockchain platforms that support it. All you have to do is pay the token price charged by the vendors of these platforms.
With Ethereum being the best and most widely used smart contract platform, the Ethereum price on contracts depends on the amount of power required for executing the contract. However, there are other widely used smart contract platforms. Below are some of the most popular blockchain platforms we’ll discuss for smart contracts.
6 Best Smart Contract Platforms Today
Technology has made it so easy that you don’t need to rely only on one platform to generate smart contracts. There are now many platforms businesses can choose from. This article highlights some of the best that including;
Ethereum deserves an honourable mention as a smart contract platform; it’s the first-ever smart contract platform and has remained the most sought-after. In 2015, the platform took off and started facilitating the deployment of applications ranging from ICOs to smart-contract-based insurance.
The main idea behind the creation of Ethereum was that Bitcoin developers rejected the idea of introducing application development capabilities to the platform. With Ethereum’s first move, the blockchain has attracted significant investment and gained traction from developers and users alike.
Generating a smart contract on Ethereum requires writing a secure code that ensures the contract isn’t vulnerable to seasoned hackers.
Polkadot is on the list of some of the best smart contract platforms that operates as a blockchain ecosystem with various platforms linked to each other. “Relay Chain” is the central component of Polkadot, responsible for allowing specialised and public blockchains to connect using a unified network easily.
On its own, the Polkadot relay chain does not support smart contracts. However, with the consistency between relay chains and parachains, developers can create their unique blockchain that supports smart contracts.
Hyperledger went live in the cryptocurrency market in 2015. It was the brainchild of 30 co-founding members, including IBM, J.P Morgan, Cisco, Intel, and many other big corporate giants.
Hyperledger is a blockchain platform that requires authentication to function. This feature makes this blockchain platform an attractive option for smart contracts. Big companies dealing with big and sensitive data prefer Hyperledger because it complies with data protection laws like GDPR.
It’s not surprising since the blockchain’s central creation vision was for enterprise use with trust, confidentiality, and security. Here, users can create private channels for particular network members, with only selected participants accessing transaction data.
In 2017, Tezos was founded by Arthur Breitman. The initial idea behind the creation was for Tezos to serve as the blockchain that solves the first-generation blockchain issues. An instance is Bitcoin’s protocol forks, which result from platform stakeholders’ inability to agree on specific protocol upgrades.
Tezos uses the Proof of Stake mechanism instead of the Proof of Work. This means Tezos relies on using delegates to publish new blocks to a chain instead of using miners’ excessive power.
Tezos is regarded as one of the most secure in the industry because its support for formal verification guarantees that smart contracts will be executed exactly as agreed upon. This is possible because all the smart contracts are written using Michelson, Tezos’ programming language.
The blockchain platform, Stellar, was launched by founder Jed McCaleb in 2014. Stellar is a platform suitable only for primary smart contract cases like ICOs and simple escrow contracts. Organisations looking for a simple yet effective smart contract always go after Stellar.
In terms of speed, cost-effectiveness, and security of transactions, Stellar is the best platform for money exchange in this regard. The primary reason IBM chose Stellar to design the global payment system that streamlines cross-border money transfer—World Wire.
Solana was created by A-list software engineers from big companies like Intel, Dropbox, and Qualcomm in 2017. Like other new-generation smart contract platforms, Solana is interested in solving scalability issues.
Impressively, Solana has been able to achieve a record-high 65,000 transactions per second. The main reason behind this result is its innovative combination of Proof of History and Proof of Stake mechanisms. Instead of grouping transactions in blocks, each transaction is allowed to reside within its block, establishing a consensus that becomes an input for the next transaction.
The advantage of this transaction pattern is that it allows developers to trace which transactions were the first or last within a particular block.
Blockchains for smart contract development are still a relatively new area. And while these platforms serve valuable purposes. First, study their distinctive features before selecting any as host for your business agreement.
The world of smart contract platforms is bustling with innovation and competition. Ethereum remains a stalwart despite its challenges, while newer players like Binance Smart Chain, Cardano, Polkadot, and Solana offer unique approaches to solving scalability, cost, and interoperability issues. As the blockchain landscape continues to evolve, these platforms are poised to drive the next wave of decentralised applications, transforming industries and shaping the future of technology.
In your pursuit of the perfect smart contract platform, consider your project’s specific requirements and goals. Whether you prioritise compatibility, sustainability, speed, or a combination of factors, each of these platforms has something unique to offer. Stay informed, explore their capabilities, and participate in the exciting journey of decentralised innovation. The world of smart contracts is still unfolding, and the best is yet to come.