How to make sure that your smart contract development process goes right is a common question of almost all investors. This topic will show you 5 steps to get clear about this issue.
What Is a Smart Contract defined?
A smart contract is a program, a piece of code that helps regulate transactions in digital currency and assets between parties. Just like any traditional contract, it is a set of rules governing what is supposed to happen under certain circumstances. However, a smart contract is created in such a way that contract execution is automatic if all conditions have been met. If something goes wrong, the contract is revoked and the exchange of assets is not made. This algorithm secures the assets of all parties involved to ensure without loss.
Make sure your smart contract development process goes right
To make sure your smart contract development process goes right, you must answer 5 following questions:
Does it make any difference to your company?
Since smart contracts are built on blockchain technology, digital currencies are used for payments. The question is: is cryptocurrency right for you? The answer is simple in case your business is already involved in any kind of blockchain platform. However, if you’re in a field where you haven’t dealt with blockchain yet, perhaps you should consider learning a little more about it. Jelvix, an international development company specializing in offshore developer services, summed it up for you in their blog post “Do you need Blockchain in your project?”.
If you realize that your answer to the previous question is “yes”, it is time to dig into a little more detail about smart contracts, specifically their limitations. Smart contracts have come a long way since 1994 when they were invented to date, however, there are a few things that are still off-limits so far.
Contracts can only be applied to something that is fully enforceable in the digital world. The entire blockchain system is decentralized and legally unregulated. So, any instance that needs to be joined outside of the network will not be bound by these contracts.
A factual basis can be only operated by smart contracts. They only rely on objective facts, not on the subjective assessments of the parties.
Their execution is done in the form “if-else” or any other similar form. This doesn’t give much space for complex variations.
Match your plan
Now that you have an idea of what you can and cannot do with a smart contract, you can plan for it. It is important to understand exactly what you want the contract to do. You can create contracts to verify transactions, transfer payments for a service, or perform cryptocurrency exchanges, and more. To achieve this, you can look at something similar already created or do market research to understand how it can benefit you.
Expert and trustworthy developer
This goes without saying, but it is extremely important who will build your contract. Although smart contracts are based on blockchain, they usually require at least some knowledge of blockchain development.
You may want to take some time and effort to find a person or group that meets your needs. Here is a Blockchain Recruitment Guide with different options.
Researchers from Singapore and the UK revealed that 34,200 smart contracts are vulnerable to hackers. So during and after your contract is built, testing will be an important part of the process to ensure that there is no abuse. Any mistake in the contract can result in the loss of your resources or the client’s money as well as loss of reputation. Testing and QA testing can help you create a successful smart contract that will add a lot of value to your business.
So regardless of if you have decided that your business is not ready for smart contracts development or not, make sure to keep yourself up to date with everything related to your business. And of course, keep yourself safe by working with experts in the field.
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