A "smart contract" is just a program that runs on the Ethereum blockchain. So who writes smart contracts and what can smart contracts be used for? If you do not know yet, please read the article below.
Who writes smart contracts?
Anyone can write smart contracts and deploy them into the network. You just need to learn how to code in a smart contract language and have enough ETH to deploy your contract. Deploying a smart contract is technically a transaction, so you pay for gas the same way you pay for gas with a simple ETH transfer. However, the gas cost of contract deployment is much higher.
What can smart contracts be used for?
Individual smart contracts can only be used for one type of transaction: if something happens, something else happens. However, most dApps work by bundling smart contracts together to achieve complex, collaborative feature sets. There are thousands of dApps in various blockchain networks including finance , gaming, exchanges and media, all of which can utilize smart contracts in different ways and for different purposes. Examples of smart contract applications include financial purposes such as trading, investing, lending and borrowing. They can be used for applications in gaming, healthcare , and real estate; they can even be used to configure entire corporate structures.
In 2017, Delaware passed Senate Bill 69, which allows the use of blockchain technology to incorporate and manage businesses. The act opens the door for the proliferation of Decentralized Autonomous Organizations (DAOs), which function as corporations and where ownership and rewards can be built into smart contracts. DAOs use smart contracts to encode corporate structures, enabling complex, self-executing incentive structures within the corporate framework. DAOs can also save on administrative costs, including office space, recruitment, and payroll, through incentive structures that may not include formal employment contracts.
I hope now you will understand who writes smart contracts and what can smart contracts be used for. Smart contracts are vital to our economy because they can provide the necessary automation for decentralized platforms. Smart contracts provide a unique way to solve problems including custody, clinical trials, insurance, government processes and more!
