Smart Contracts Explained: The Building Blocks of Web3

Introduction:

Welcome to our exploration of smart contracts, the innovative core of Web3 technologies.

This lesson aims to demystify smart contracts for beginners, explaining their creation, security, and integral role in the blockchain ecosystem.

Remember, watching the lesson video will offer a deeper understanding of this topic.

Learning Objectives:

By the end of this lesson, you will be able to:

1. Understand what smart contracts are and their functionality.
2. Learn how smart contracts contribute to blockchain technology.
3. Explore various smart contract programming languages.
4. Discover the top smart contract blockchains and their respective languages.
5. Understand the benefits of smart contracts in maintaining decentralization, permissionlessness, and trustlessness in Web3.

Lesson Video:

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What is a Smart Contract?

Smart contracts are self-executing contracts with the terms of the agreement directly written into code.

They run on blockchain networks and automatically enforce and execute the terms of a contract when predefined conditions are met.

How are Smart Contracts Made and Secured?

Smart contracts are written in programming languages and deployed on blockchain networks. They are secured through blockchain technology, ensuring that once deployed, they cannot be altered.

The immutability and distributed nature of blockchains provide a secure environment for smart contracts.

Contribution of Smart Contracts to Blockchain:

Smart contracts extend the basic functionality of blockchains from mere transaction processing to executing complex business logic, thus enabling decentralized applications (dApps).

We will learn more about dApp in-depth in a later lesson in this course.

Types of Smart Contract Programming Languages:

• Solidity: The primary language for Ethereum and other EVM-compatible blockchains.
• Rust: Used for Solana and other non-EVM blockchains.
• Other languages include Vyper etc.

Top 10 Smart Contract Blockchains and Their Languages:

1. Ethereum (Solidity)
2. Solana (Rust)
3. Binance Smart Chain (Solidity)
4. Polkadot (Rust, Ink!)
5. Cardano (Plutus, based on Haskell)
6. Algorand (TEAL)
7. Avalanche (Solidity)
8. Tezos (Michelson)
9. Flow (Cadence)
10. Cosmos (CosmWasm in Rust)

Benefits of Smart Contracts:

Smart contracts are essential in maintaining the decentralized, permissionless, and trustless nature of blockchain networks.

They automate processes, reduce reliance on intermediaries, and ensure the integrity of transactions, adhering to the principle “code is law”.

Conclusion:

Smart contracts are a revolutionary aspect of blockchain technology. They offer a secure, efficient, and transparent way to automate and enforce agreements, playing a pivotal role in the Web3 ecosystem.

Understanding their fundamentals is key to grasping the vast potential of blockchain technology.

Support:

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