Smart contracts are a new way of automating online transactions without the need for an intermediary. Whether you’re posting a cat photo to a microblogging app or lending out money to friends, smart contracts are designed to execute the transaction automatically if certain conditions are met.
Developing smart contracts on ethereum is relatively easy, but it requires a solid understanding of the blockchain platform and its programming language. The Ethereum community developed a program called Solidity to help developers write smart contracts, which run on the platform’s decentralized blockchain.
Writing smart contracts on ethereum involves writing code that will execute a transaction if a set of conditions are fulfilled. The code is then uploaded to the Ethereum Virtual Machine (EVM), which runs on top of the blockchain network and enforces the contract.
When the contract is submitted, it creates a record of the transaction on the blockchain that is visible to anyone who has access to the Ethereum network. This ensures that no one can manipulate or change the recorded data.
The blockchain network itself is designed to be scalable and secure, so it can process millions of transactions per second. This is accomplished by using thousands of computers around the world to validate every transaction that comes across the chain. These computers are known as miners and pay a fee, which is usually in the form of ether – Ethereum’s native token – to keep the network running.
Aside from being able to handle transactions, the blockchain also stores a vast amount of information in its database. This is called the Ethereum block chain, and each entry is recorded with a hash key that’s unique to the transaction.
In addition, each transaction is recorded with a transaction ID that can be traced back to the original sender. This allows people to track the original transaction’s history and make sure it was completed correctly.
Creating a smart contract on ethereum requires a good understanding of the blockchain’s programming language and how to use the EVM, which is the engine that runs Ethereum-based smart contracts. Fortunately, there are many tutorials out there to guide you through the process.
To begin, download MetaMask, a browser extension for Google Chrome that works as both an Ethereum wallet and a smart contract developer’s tool. Once you’ve installed the extension, you can import an existing wallet or create a new one and submit your Ethereum to deploy a smart contract.
Then, you can start writing your first smart contract. For example, you can write a smart contract that will allow you to rent out a hostel room to someone.
Once the code is complete, you can test it by sending ether to the contract’s address. If the contract does its job properly, you will get a response containing the address of the tenant or landlord who received the funds.