Organizations have been investigating smart contract applications and their potential for development since this technology was introduced. Smart contracts may expedite operations in a wide range of sectors that depend on contractual interactions, including blockchain for charities, trade finance, insurance, and construction.
SmartOSC delves even further into this topic in this post, attempting to determine what characteristics to consider when choosing a smart contract platform for your use case.
Evaluation criteria of smart contract platform
A self-executing computer software known as a “smart contract” stores the conditions of a contract on the blockchain. The program runs automatically when the contract’s inherent criteria are satisfied, essentially doing away with middlemen.
Furthermore, smart contracts greatly boost transaction speed while significantly reducing transaction costs, evaluated based on the following criteria:
- Execution environment
- Smart contract language
- Turing completeness
- Permission type
The first smart contract platform in the world was Ethereum, which is still the most widely used by programmers today. Since going live in 2015, the platform has made it possible to develop apps ranging from ICOs to smart-contract-based insurance.
It’s interesting to note that Vitalik Buterin, the platform’s creator, chose to develop Ethereum after Bitcoin developers rejected his suggestion to add application development capabilities to the platform. Due to its first-mover advantage, Ethereum has been able to draw large funding and earn acceptance from well-known companies like Intel and Samsung.
Gavin Wood, co-founder of Ethereum and author of Solidity, developed Polkadot. Polkadot is especially appealing since parachains enable developers to build their own blockchains with unique coins and governance structures.
Most notably, Polkadot leverages parachains as shards, enabling scalability never previously possible thanks to transaction processing in parallel. The Polkadot network also has bridge chains to connect parachains to external blockchain smart contract platforms.
In 2015, the Linux Foundation launched Hyperledger with the assistance of 30 co-founding corporate members, including major players in the market including IBM, J.P. Morgan, Cisco, Intel, and others.
As a permissioned blockchain, Hyperledger Fabric implies that members must authenticate and that their identities are known. Because of this, Hyperledger is particularly appealing to businesses that handle sensitive data and must abide by data protection regulations like the GDPR.
Users of the smart contract platform can establish private channels for certain network people, limiting access to transaction data to those users. The platform provides an additional hardware-based security paradigm for identity management, ensuring the greatest degree of business cybersecurity.
In 2017, Arthur Breitman launched Tezos with the goal of developing a blockchain smart contract platform that would address problems with first-generation blockchains, such as protocol splits.
For instance, the fact that Bitcoin has several forks, such as Bitcoin Cash and Bitcoin SV, indicates that the platform’s stakeholders were unable to reach a consensus on some protocol improvements and instead chose to split the network.
Tezos mixes on-chain governance with self-amendments to prevent hard forks. As a result, protocols may be automatically updated if a majority of interested parties accept an enhancement that a developer has suggested. With such a design, the platform may expand naturally as developers are encouraged to participate.
The use case is the primary factor in the platform decision. It would be as futile as attempting to implement a public bitcoin exchange to build complicated IoT-connected insurance. Expert advising is essential to guarantee platform fit and get the most out of smart contract platforms. Please get in touch with SmartOSC if you need more direction or information.
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