Smart contract, a $617 billion market cap cryptocurrency industry, has been breaking through barriers and trading at exorbitant rates.
It begs the question of why this latitude performs well compared to other sectors like NFT and DeFi (Decentralized Finance).
How do Smart Contracts Work?
A smart contract is a computer protocol that automates the concession or execution of a contract. Smart contracts enable creditable transactions to carry out without the involvement of other parties or government regulators. Vending machines are a good analogy for smart contracts.
In general, a lawyer requires to draft a contract before it becomes legally enforceable. Smart contracts, on the other hand, eliminate the need for lawyers to write documents.
They make it possible to exchange money, property, allotments, or anything else of value without the need for an intermediary.
Smart contracts also provide a number of advantages. Because of the diverse usage of accessible applications, the smart contract sector or business is growing at an exponential rate. Jerry Cuomo, IBM’s Vice President of Blockchain Technologies, praised smart contracts for their ability to use in a variety of industries, including finance, healthcare, and insurance.
Because decrypting the system involves a significant amount of computational power that may not be simple to collect, smart contracts can use to influence free and fair government decisions, particularly in developing countries where election fraud and identity fraud are common.
Typically, corporate operations include a lot of back-and-forth in management. Including lingering for approvals and waiting for internal or external concerns to resolve themselves. Smart contract-based systems give a single tally as a source of confidence and have feasible contact and workflow impacts. They eliminate disputes that arise from independent processing.
Real Estate and Health Care
Smart contracts remove the need for mediators in real estate, similar to advertisers and agents, therefore, saving costs. All you do is pay through cryptocurrency and render your contract on the tally for everyone to see.
A customized key may use to decrypt and save specific health records on the blockchain. However, healthcare practitioners in the indicated countries have access to your medical data, which is important if a patient is unconscious or has a health issue while abroad.
The Top 3 smart contracts cryptocurrencies according to the market capitalization are Ethereum (ETHER), Cardano (ADA), and Chainlink (LINK).
Ethereum and Cardano
Ethereum served as a foundation for a slew of alternative cryptocurrencies as well as decentralized smart contracts. It’s a decentralized open-source blockchain system that runs on Ether, its own coin.
The Ethereum network has been enforcing many locks, which has resulted in a significant spike in gas prices. The “EIP 1159 London Hard Fork Upgrade,” which began in July 2021, anticipates resolving these issues. The currency has become more trustworthy as a result of this information.
Cardano is a proof-of-stake blockchain platform for changemakers, innovators, and visionaries. A more encouraging, reliable, and transparent society is the goal of open-source design.
The Cardano blockchain’s currency, the ADA token, means to protect those who may participate in the network’s operation. As a result, people who oppose cryptocurrencies have the right to challenge any proposed software changes. The current drop in ADA’s price is due to Alonzo Testnet’s upcoming introduction in May 2021.
Lower locks, little to no service time-out, and greatly reduced gas expenses promised in the most-awaited smart contract debut. People are likely to migrate from the Ethereum network to the Cardano network, resulting in fierce competition for Ethereum.
What is Chainlink?
Chainlink is a subcase of the blockchain that allows smart contracts to link extensively. It enables blockchains to safely link with external data feeds, events, and payment methods, providing the vital off-chain information required by complicated smart contracts in order to reach the most common type of digital agreement.
A huge open-source community of smart contract creators, experimenters, security adjudicators, data producers, node operators, and others founded the Chainlink Network. The firm focuses on ensuring that all operators and users are able to contribute to the network in a decentralized fashion.
The smart contract space is still in its immaturity and more exponential growth anticipates. The three tokens have become the pioneers of the smart contract ecosystem, wherein, they conform and contrive as the world progresses.