Everything that we see around us is evolving into getting smarter. By smarter, it does not mean that the physical appearance is getting better and better or some other attire is getting changed, but by smarter it means the entity that was not using technology before is now technical based and getting better day by day. There are smart chips, smartphones, and many more. In the category of smart entities, one more thing has joined hands and that is smart contracts. Contracts as we know contain some rules, terms, and conditions for getting something done on pre-decided terms. In a similar way, smart contracts are the digital form of these terms and conditions and the work associated is of digital nature and the phase of completion is digital as well. If you want to invest in bitcoins, you may consider knowing about the Bitcoin’s Future Reasons to be Optimistic and Skeptical.
What is a smart contract?
Smart contracts are referred to as already programmed digital agreements that have the capability to get started and completed, all by themselves. By itself, it means that we need no mediator to perform the work but the whole process is self-dependent. There is no need for a third party. So the process is clutter free and simple to perform. As there is no third person involved, the fees charged are also less and the process is simplified as well.
Cardano smart contracts
When the Cardano network (ADA) was updated in September 2021, the feature of smart contracts was introduced to it. The update was named Cardano Alonzo. Before the update, there was no feature of smart contract in Cardano but it was full-fledged in the ethereum. So, by introducing the feature in Cardano too, it proved to be a complete alternative for smart contracts of ethereum. In comparison to ethereum, it features ease, is flexible, and has bigger and better scope. Thus, now Cardano presents itself as being a tough competition to ethereum.
Cardano smart contracts are called ADA contracts and they have somewhat similar functions as compared to ethereum. Just like a normal physical contract, this digital contract called a smart contract also acts between two entities. The terms and conditions that are selected pre-contract finalizing also have the protocols in association with the Cardano ADA smart contracts protocols.
Benefits of Cardano smart contracts
As discussed earlier, there are no middlemen present, so there is no need for extra fees to maintain those contracts. Smart contracts work with the same technology as cryptocurrencies. The technology is decentralized so there are no chances of tampering or fraud. The fast and efficient smart contracts are easy to execute as they have a speed much greater as compared to physical contracts. Moreover, there is no need to backup the data stored as the data is stored on the blockchain network, so the data is permanent and tamper-proof.
Programming languages used in Cardano smart contracts
Usually, three languages are mostly used which are Plutus, Marlowe and Glow. Plutus is a type of contact development that works for some purpose and has the benefit of being power-driven by the modern language. These work on machines of blockchain users and individual users. On the other hand, Marlowe is a domain-specific language. It has some codes that are traditional. High skill and knowledge are required. Glow has a similar domain-specific nature as Marlowe and works with many applications of decentralized nature. It has the capability to store and use several dApps that finally assures the safe creation, execution, and operations of a program in a network. The contracts can be made either by paying or observing and then closing the contract on some other party digitally.
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