Would you like to learn how to develop a smart contract on the blockchain? If yes, then you are reading the right article. We will discuss how to develop a smart contract and what factors need to be considered when developing one.
What is a smart contract and what business problems does it solve ?
Blockchain technology has the potential to streamline many of the time-consuming and repetitive tasks traditionally performed by humans, such as data entry or transaction verification , which increases the security of business processes and reduces errors . One of the most interesting areas of this technology is smart contracts , or “smart” contracts.
What is a smart contract in simple words?
Smart contracts are a set of rules written in code that execute automatically when certain conditions are met. This means you don’t need multiple intermediaries , a party to enforce your agreements, saving you time and money . Smart contracts eliminate the need for human intervention and error , while improving execution speed, transparency , and security .
This technology is most useful for companies that work with large amounts of money and have a large number of suppliers and customers , the interaction between which must be constantly monitored .
A simple example of using a smart contract
Some companies use smart contracts to rent cars . The company can program its smart contract to automatically unlock the doors when the customer pays the rent. If the tenant does not pay within a certain time, the smart contract blocks the doors and the engine.
Scope of smart contracts
Smart contracts can also be used to automate processes such as employee compensation , inventory tracking , financial transactions, vendor payments , medical records storage , and more, allowing you to focus on what matters most.
How to develop a smart contract?
Developing a smart contract is not like writing computer code . This process requires a different way of thinking and understanding how blockchain technology works . To develop a smart contract, you need to think about your business in terms of data and events . You must develop a set of rules that define how the blockchain will interact with these events and data. This will help you create a smart contract that is not only functional but also secure .
To develop a smart contract, the following steps must be followed:
- Define a business problem and develop requirements to solve it
- Create a smart contract prototype
- Test and find errors
- Deploy a smart contract on the blockchain
Our development team is ready to help you with the implementation, launch and subsequent maintenance of smart contracts, both simple and complex, depending on the tasks. Our developers are proficient in programming languages for writing smart contracts, use a wide range of tools and frameworks to create high-quality and secure applications. Tell us about your idea and we will help you turn it into a real blockchain application.
Stages of smart contract development
We define a business problem and develop requirements to solve it
This will help you make sure your solution is practical and can be used in real life.
There are two parts to a smart contract: business logic and blockchain . The business logic describes what you want the smart contract to do , and the blockchain how you want it to do .
To create a smart contract, first identify a problem or opportunity for your business. What problem is your business facing that can be solved with a smart contract ? Once you have identified a problem or opportunity for a smart contract, write down all the requirements for your solution. Here are some general requirements :
- What is an input ? (This can be an event, such as an invoice from an order)
- What is the output ? (This may be payment for purchased items)
- What is considered reliable data ? (What information must be included for a transaction to go through?)
- What will happen when the contract is completed ? (A smart contract can pay out, for example, a sum of money)
- How do you know that a transaction has taken place ? (This can be the signature of both parties on the smart contract)
- What happens if the contract is not fulfilled ? (A smart contract can be configured to automatically pay a penalty if a transaction has not occurred within a certain time)
- How to update the contract? (If the situation changes, you may need to adjust the conditions)
Please contact us if you have an idea: we will help you refine it, or come up with a solution.
Choosing a blockchain platform
Choosing a blockchain platform for developing a smart contract can be a difficult decision, but the success of your project depends on it. There are many different options , and each has its own strengths and weaknesses . For example, Ethereum is a popular platform that has many features and tools for developers. However, it has scalability and privacy issues . On the other hand, other blockchains may be more suitable for certain use cases. For example, Stellar can be used for payments and token issuance , while EOS is suitable for gaming applications .
Before you decide on a particular platform, it is important to consider the following questions :
- What type of blockchain do you need?
- How old is the platform?
- What functions does it have?
- Does it offer privacy features that protect users’ personal information?
- Is the blockchain platform secure ?
- Can this blockchain handle large volumes of transactions? Will it scale in the future?
- What is the activity in the community? (Are there many developers working on it?)
- Are there companies or projects actively using this blockchain ?
- Is there any serious problem that we may face if we choose this particular blockchain ?
- Does the blockchain have good documentation and open source code available for developers to review?
We develop a smart contract prototype
After choosing a blockchain, developers can start working on a smart contract prototype . The goal of prototyping a contract is to make sure it works as expected in real life before implementing it on the blockchain.
The prototype should include all the necessary features of your smart contract , such as:
- Business logic
- User interface
- Database management and storage
- Data validation, processing and analytics
- Internal blockchain integration
- Functions : The functions of your prototype include any actions that users can perform on their own
- Communication with other systems in your organization (such as databases or legacy applications )
After creating a prototype of a smart contract , the timeline for the development of your project will become clear.
Testing a smart contract
Testing is the process of checking software for bugs . This is a critical step in the development of any project that must be completed before the prototype is launched . This stage may include testing the code for all possible scenarios, as well as simulating the execution of each scenario on the blockchain.
The testing process can be very time consuming , especially for complex smart contracts . If you are not a developer, it is strongly recommended that you work with a team of specialists with relevant experience .
Smart Contract Deployment
After testing is complete, your smart contract will be ready to be deployed on the blockchain network of your choice. This process may include installing nodes, setting up a blockchain network , and running a contract on the network. Once deployed, the smart contract cannot be modified . If you still need adjustments , you need to create a new smart contract .
Smart contract development : do it yourself or outsource it. What’s better?
The development of a smart contract can be carried out in two ways: independently or through a third-party company specializing in this product. Explore both options and see which is best for you.
This is a good way to keep the project under control and also save money on hiring a third party company. However, this requires a lot of time and resources . Depending on the size of the project, you may need to hire a development team with relevant experience .
It is reasonable to develop a smart contract on your own in the following situations :
- You have the necessary skill set to develop your own smart contracts
- You have a small project that does not require much improvement and relevant experience
- You don’t mind spending time learning smart contract development. In this case, you will have to learn everything about blockchain technology, cryptography and distributed systems . You will also have to learn how to code in a programming language designed to develop smart contracts.
Outsourcing the development of smart contracts
There are several reasons why you might want to consider outsourcing this work:
- You have an idea, but you do not know or are not sure that you can implement it correctly
- You do not have your own resources or experience to develop smart contracts on your own
- Your project requires an individual development of a smart contract
- You have a big project that needs to be quickly developed and implemented
- You don’t want to spend time learning smart contract development because you have other priorities
As a conclusion
Smart contract development is a complex process that requires extensive knowledge of programming languages and blockchain technology. The price of mistakes here is much higher than in other projects. That is why most companies outsource their smart contracts to professionals.
Our team will support you at all stages of development and help you create a smart contract that meets your needs , is secure and scalable . If you would like to know more about our services or have any questions, please contact us.