The process of concluding any transaction is first and foremost the drafting of a contract in which all the terms, rights, and obligations of the parties involved are set out. Thanks to the active development of blockchain technology and special tools such as the Bridge to ARB, the need to work with intermediaries, such as banks or notaries, is a thing of the past, so smart contracts have replaced regular ones.

In this article, we will consider the principle of smart contract working and give some examples of the best platforms for working with smart contracts. Have a pleasant reading!

Smart contract: working principle

Special programs have been developed that monitor the performance of both parties’ financial transaction obligations, which are outlined in the contract. Also, it automatically charges fines for breach or failure to comply with the terms of the transaction. Smart contracts provide security for any financial transaction using a blockchain and are free of many risks that regular transactions have. Transactions with smart contracts are more profitable transactions since the user does not have to pay lawyers and other financial intermediaries for their services.

In short, the smart contract technology is implemented according to the following principle:

1. Transaction planning. Sending a transaction to the computer network of peer-to-peer nodes.
2. Transaction verification and user status determination by nodes network.
3. Merge the transaction with other ones and form a new block of the digital registry. It occupies a unique place in the chain of blockchain and is not susceptible to change. Since then, the transaction has been considered completed.

Ten best smart contract platforms for business and personal use

The principle of successful and profitable work with cryptocurrency is pretty simple: all you need is to hire qualified employees in a team, use current opportunities, and forget about savings on development and innovation. But where can you use smart contracts?

Here are ten special platforms that are provided specifically for this:

1. Ethereum. That is an open online platform for creating smart contracts. This platform has the most functions in this field for now.
2. Solana. This platform is known for its high performance and low transaction costs. The platform uses unique Proof of History technology.
3. NXT. The open online platform has a limited number of smart contracts, where users can implement special templates.
4. Cardano. The platform focuses on security and uses a unique approach to developing and implementing smart contracts by Plutus language.
5. Avalanche. Avalanche offers high transaction speed and compatibility with Ethereum and uses a unique architecture to develop decentralized applications.
6. Bitcoin. That is the very first cryptocurrency that is great for transacting. But its structure is not perfect for that today.
7. Tron. It was developed to create a decentralized internet. The platform offers low fees and high transaction speed.
8. Hyperledger Fabric. That is the platform for developing smart contracts in private blockchains. It is suitable for corporate solutions and can give users flexibility in privacy settings and access control.
9. Tezos. Tezos is an auto-updating blockchain, which allows users to make changes to the protocol without forks.
10. Binance Smart Chain. BSC is an inexpensive alternative to Ethereum, which is compatible with Ethereum Virtual Machine and can easily transfer DApps from Ethereum.

Conclusion

Smart contracts technology is a fairly convenient, simple, and fast tool that allows to realize transactions of different types and destinations. The smart contract industry is quite promising and evolving at a great speed. Both users and employees of large cryptocurrency companies noted that. The chief technology officer of Ethereum stated that smart contracts could be applicable in any industry like medicine, automotive, or real estate.