Ethereum Smart Contracts Explained: Applications, Use Cases, Platforms and Blockchain (All you need to know about Ethereum Smart Contracts)

Many people now understand the blockchain. However, the Ethereum blockchain is much more complex as compared to others. Ethereum blockchain can support the transactions and also the decentralized applications. In addition to that, the Ethereum blockchain can support the execution of smart contracts as well. With the help of smart contracts, Ethereum is becoming more and more popular. As a result, whenever you look at Ethereum, you will realize that the potential is immense when you take into account the smart contracts.

What are Ethereum smart contracts?

The basic aim of Ethereum smart contracts is to transfer the value from one person to another. This will happen only when the condition is fulfilled. Ethereum provides a proper scripting language to the developers in order to create such smart contracts. On the other hand, the capability of Bitcoin to create such smart contracts is limited. This is the reason why Ethereum has more leeway when it comes to smart contracts.

Ethereum is one of the blockchains which offers versatile smart contract execution capability. As scripting language can be easily used for the execution of the smart contract, the smart contract can be drafted to the last detail quite easily. This will mean that smart contract is pretty easy to execute. Also, multiple conditions can be drafted into the smart contract quite easily.

Usability of smart contracts:

Smart contracts can enable you to conduct various transactions like:

  • Create accounts which require multiple signatures to transact
  • Create agreements between different users
  • Provide utility services according to the contract
  • Store information about domain registrations, as well as hosting among other info

As you can see, the usability of Ethereum smart contracts is plenty. Since there is a programming language in all, it is easy to create a proper smart contract which can be executed based on the conditions. As a result, smart contracts can be used for a variety of different purposes. This is the reason why users and developers are trying to use this capability of Ethereum in order to make the network more versatile.

The next time around, you’re looking to use blockchain or any cryptocurrency; it is a better idea to go with Ethereum. With the help of Ethereum, creating smart contracts and executing the smart contracts will actually become much easier for you. As a result, it will become much easier to transact online. With the help of blockchain-based smart contracts, execution will certainly become easier. Keyword: Ethereum, blockchain, smart contracts, ethereum smart contracts explained, smart contract applications, ethereum smart contract use cases, smart contract blockchain, smart contracts bitcoin, best ethereum smart contracts, smart contract platforms, smart contracts insurance

What Are Smart Contracts?

Smart contracts are applications that run on the Ethereum Virtual Machine. This is a decentralized “world computer” where the computing power is provided by all those Ethereum nodes. Any nodes providing computing power are paid for that resource in Ether tokens.

They’re named smart contracts because you can write “contracts” that are automatically executed when the requirements are met.

For example, imagine building a Kickstarter-like crowdfunding service on top of Ethereum. Someone could set up an Ethereum smart contract that would pool money to be sent to someone else. The smart contract could be written to say that when $100,000 of currency is added to the pool, it will all be sent to the recipient. Or, if the $100,000 threshold hasn’t been met within a month, all the currency will be sent back to the original holders of the currency. Of course, this would use Ether tokens instead of US dollars.

This all would happen according to the smart contract code, which automatically executes the transactions without the need for a trusted third party to hold the money and sign off on the transaction. For example, Kickstarter takes a 5% fee on top of a 3% to 5% payment processing fee, which would mean $8000 to $10000 in fees on a $100,000 crowdfunding project. A smart contract wouldn’t require paying fees to a third-party like Kickstarter.

Smart contracts can be used for many different things. Developers can create smart contracts that provide features to other smart contracts, similar to how software libraries work. Or smart contracts could simply be used as an application to store information on the Ethereum blockchain.

To actually execute smart contract code, someone has to send enough Ether as a transaction fee—how much depends on the computing resources required. This pays the Ethereum nodes for participating and providing their computing power.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.