Greetings,

Back at it with another blog and for today I wanted to provide a brief overview of the term "Smart Contract". Within the world of Web3 there are many who may speak of the term, but do you really know what it is? Well being in the world of Web3 and now blogging I felt it was only right to speak about Smart Contracts, types and more. Let's not waste anymore time and get right into the topic shall we!?

Smart Contracts are like any other contracts. They establish the terms of an agreement however these are digital. They are executed as code running on a blockchain like Ethereum for example. Smart Contracts allow devs to build on the blockchain taking advantage of the security and other offers. Everything from loans to gaming is done using these type of contracts.

The importance of a smart contact is to build a wide variety of dApps and tokens. Once a Smart Contract has been added to the blockchain, it cannot be changed. They were proposed at first in the 1990s and are written in a variety of programming languages such as Solidity, Web Assembly and Michelson. To execute a Smart Contract on the Ethereum network you will need to speak about "gas". That's a huge topic in the community and I will not discuss in this blog. I'll just say "You'll need gas to drive on Ethereum".

Here's some PROS and CONS of Smart Contracts reviewed:

PROS:

  • Improve a digital ad campaign

  • Build a better customer experience

  • Fill void in entertainment consumption

  • Eliminate the go-between in financial transactions

  • Enhance healthcare communication pipeline

  • Max productivity for human resources

  • Boost security for identity and access management

CONS

  • Compliance

  • Data Integrity

  • Logic Hacks

  • Scalability

  • Standards