Smart Contracts in Ethereum Blockchain
Ethereum is a public blockchain, that provides all the necessary tools to create smart contracts. Like bitcoin, ethereum leverages the power of blockchain technology. When we draw a comparison between bitcoin & ethereum, the only common aspect we find, is the basic dependence on blockchain.
Bitcoin uses blockchain to transfer value in a peer-to-peer decentralized network, where technology provides mathematical trust. Ethereum on the other hand, uses the same blockchain technology to create custom smart contracts and the ability to create peer-to-peer decentralized apps based on those smart contracts.
To put this into perspective, consider bitcoin a single app based on a technology called blockchain. In this context, ethereum is a platform that also uses blockchain to create & publish multiple decentralized applications, including apps that are similar to bitcoin.
What is a Smart Contract?
Smart contract is a computer program that uses advanced cryptography & blockchain to independently execute the terms of the contract that are set during the design & development of the contract.
Smart contracts work without any third party interference. These are fire & forget type programs that execute tasks fully automated & exactly as planned. Once a smart contract is out, it does not require any assistance during the execution phase.
Ethereum Smart Contracts
Ethereum provides the basic infrastructure to develop & run smart contracts. Based on a public blockchain, ethereum is powered by its native token ether. On the ethereum platform, developers need ether to pay for computational power required to process their smart contracts.
Ethereum is a complete decentralized & peer-to-peer network, that enables developers to run their smart contracts securely & transparently with the built-in efficiency of the blockchain.
Smart Contract Development in Ethereum
Ethereum uses its own programming language known as Solidity to develop smart contracts. It is a contract-oriented programming language.
Solidity is based on C++, python and JavaScript. According to official solidity documentation, it is designed to target Ethereum Virtual Machine (EVM) — this virtual machine actually processes smart contracts on the ethereum platform.
Developers can use solidity to create smart contracts for auctions, crowdfunding, cryptocurrency wallets, voting programs & more.
Solidity official documentation provides extensive information for developers on how to ensure best practices in smart contract development.
