Understanding What are Smart Contracts and How to Create Them

Smart contracts are a great invention. By automating different processes and transactions on the blockchain, they have made blockchains more efficient. They can largely impact businesses by saving time and cost of executing various forms of transactions.

There are hardly any industries across the globe that can remain untouched by the innovation that smart contracts have brought. Smart contracts not only cut short the need for any intermediaries but they also make transactions more secure and resistant to frauds. All this is possible because they replace the human trust model with computer codes that cannot be altered in any way.

Various industries such as finance and banking, supply chain, real estate, gaming, medical and healthcare have started relying on blockchain for smoother functioning of their system.

Despite the tremendous use cases of smart contracts, today’s businesses fail to implement smart contracts for two reasons: lack of professional smart contracts developer who can create a tailor-made smart contract for a particular requirement; the inability to link smart contracts with external data because smart contracts only understand data stored on a blockchain.

However, in this fast-paced world, it hardly takes time to develop a solution for every problem that comes through. MyContract is a smart contract platform that helps businesses easily set up smart contracts for their business and link it to their already existing systems.

What is MyContract

MyContract is a that aims to bridge the gap between the business world and blockchain and smart contracts. It helps businesses create and deploy smart contracts without writing a single line of code.

Developed by the team at XinFin Network, which is a hybrid blockchain for global trade and finance, the platform through smart contracts deployment aims to help small and large businesses “exchange money, property, shares or anything of value in a transparent, conflict-free way without the intervention of a middle party.”

The different smart contracts platforms so far made available to businesses still required them to take help from professional developers to create smart contracts. However, MyContract aims to make smart contracts creation a matter of a few

Since its inception, MyContract has so far added to its valuation and currently sits atop a net worth of 1.7 million dollars, with each of its native tokens, XDCE, valued at $0.00044 at the time of writing(1st July 2019). The lower price of the token results in a lower cost for deploying smart contracts on MyContract.

This brings us to our second major issue for businesses to implement smart contracts, which is the inability of smart contracts to extract and read data from real-world applications.

There are tools, however, that make up for this shortcoming of smart contracts. These are known as Oracles. Oracles, in short, bridge the gap between blockchain smart contracts and real-life software applications.

Why do we Need Oracles?

The general forms of smart contracts are efficient readers of data that is transmitted on to a blockchain. But they fail to comprehend any data input that might be directly fed to them through a real-world application. More precisely, blockchain nodes that execute the smart contract codes are unable to access and read data from outside applications on their own.

To settle this case, Oracles act as the intermediary smart contracts that take data input from a non-blockchain application, store it on the blockchain, and push it forward to a blockchain smart contract for the further usage.

Most of the data available today are stored on the conventional storage systems. This renders smart contracts’ incapable of reading a major chunk of today’s available data, which in turn cuts off blockchain and everything related to it from a huge portion of the world.

Thankfully, Oracles bridge this large gap through their features.

Chainlink: The Most Widely Known Oracle

Chainlink is an Oracle sidearm of . It garnered most of the attention during the bearish crypto markets. As bitcoin, ether, litecoin and all other major cryptos lost their value, LINK token of Chainlink gained over 100 percent in total valuation.

Chainlink is a decentralized network of Chainlink nodes that are helping smart contracts be directly fed with data feeds, and rendering them off-chain payment capabilities. It has an on-chain and an off-chain section that coordinate with each other to make the data transfer to smart contracts possible. The network has been created such as to have enough room for any changes that may be required in the coming times due to technological developments

Currently, the company stands at a total valuation of 1.2 billion dollars, with each LINK token valued at $3.47 at the time of writing(1st July 2019).

Conclusion

Smart contract is a powerful technology. And it has indeed created unprecedented hype in the technological landscape due to its huge potential. Given how easy it is to now create and deploy smart contracts, it is the perfect time for businesses to start working on its implementation to and reap maximum benefits in the times to come.

Also, Have a look at my previous article: Please share your Views and Comments.

Blockchain Enthusiast -