Disadvantages of blockchain smart contracts
With all the benefits and flexibility of smart contracts, they have many drawbacks:
- The difficulty of coding. You can get a standart contract from a lawyer. There are a lot of such services. You just need to contact any legal agency and get the necessary documents. In the case of blockchain smart contracts, the role of a lawyer is performed by the developer. Interesting, is not it? They code a script for conducting transactions. Currently, the number of such specialists is limited and not all have the required level of skills. Bugs in a smart contract can lead to large financial costs. Our company, Merehead, is developing scripts with a high level of security.
- Faults. As mentioned earlier, developers can make a mistake that can lead to loss of money or will allow hackers to steal money.
- Flexibility. Smart contracts do not have the flexibility. The technology of the blockchain is built in such a way that it does not allow changing the data. The previously created blockchain smart contract cannot be replaced any data or edited.
- Legal regulation. To date, there are no laws that could regulate the relationship based on the blockchain smart contracts. Courts will not be able to accept your application since the government hasn't yet passed the necessary laws.
Where are blockchain smart-contracts used?
Contracts are concluded with the use of blockchain technology. But it needs to note that not all cryptocurrencies support smart-contracts:
- Ethereum. This platform gives the most opportunities for coding various smart contracts. You can implement almost any scenario. Ethereum is the most common way (togehter with 0x protocol) for building decentralized exchange.
- Bitcoin. Interestingly, smart contracts are almost never used.
- Side Chains. The project bitcoin for the expanded use of smart contracts.
- NXT. An open platform that has a limited number of smart contracts. However, it does not allow you to code your own solutions (scripts) to create personal contracts.
As you understand, blockchain smart contracts are used on the basis of the cryptocurrency platform. They regulate transactions between accounts and can be used to raise funds when launching an ICO. Owners of startups who raise funds must provide safe conditions for investors. All participants must be sure that their money will not be stolen and will be returned if the project fails. All this can be prescribed in smart contracts. Ethereum is one of the few platforms that can offer this opportunity.
Blockchain smart contracts are just gaining popularity and every day developers are suggesting new solutions in different industries: real estate, banking services, healthcare, logistics.
How to use smart contracts
If you want to use standard solutions, you can start from templates. If you decide to create your own script, then you need to choose a development team. Since the smart contract on the Ethereum platform uses the Solidity programming language. Our company Merehead is engaged in the professional development of platforms using the blockchain of smart contracts. For example, the launch of a cryptocurrency exchange using blockchain transactions. As mentioned earlier, the most popular solution is the use of the Ethereum platform. In order to use a smart contract, you need to create a wallet and start the transaction:
1. Sign up in ethereum.org
2. Download the crypto-wallet from the "Ethereum Wallet" tab and install it.
3. Create a signature and come up with a private key.
4. Go to the section for creating transactions. Here you can specify the crypto-wallet data, the transfer amount and add the program code in the input field. It is here that you can insert a script of a smart contract or use a ready-made template. Part of the smart contract code:
By the way, every transaction in Ethereum requires payment. For this goal, a special currency is used - Gas. It is transferred to the account of the "Miner", who is doing the transaction by the money. The fee cost depends on the contract of the smart contract and is calculated automatically by the system. If you have any questions, we will be happy to help you.
Our company is engaged in the professional development of Ethereum Smart Contract. If you have questions on how to build a successful and efficient Ethereum Smart Contract, contact us
and we will be glad to provide free advice.