Why Solidity Blockchain development services are becoming popular is because of the fact that it is the basis of the smart contracts – written in Solidity.
Solidity is a programming language for Ethereum smart contracts. It is a very high-level language that resembles class-based Java or C++. So, the web developers with this precondition to learn Solidity has got a gateway open for a bright future with Blockchain technology!
Most of the programmers are not aware of the fact that before learning Solidity, Java is a prerequisite class-based language needed to get started with Solidity. Though, emphasis on learning the basics of Java would just be enough!
Another most sought after things these days for the web and app developers is creating dApps or decentralised apps with Blockchain technology – which is usually termed as Blockchain dApp development.
In this blog, we’ll be majorly talking about Smart Contracts.
Ethereum-based Smart Contract Development
History & Usability
You might be curious to know what smart contracts are and how they may replace lawyers in the future (not really?). Let’s delve deeper into the whole concept from the very beginning.
What is Ethereum?
If you are new to Ethereum, you should first know that it is an open-source public distributed ledger system, which came on the scene in 2013 and implemented in July 2015 for the first time. We can also call Ethereum as the second generation of Blockchain, which is a global platform for decentralized applications and [S1] has a native cryptocurrency ETH (Ether).
Ether is almost used in the same way as Bitcoin is used- to make digital payments globally in seconds, rather faster than Bitcoin! The USP of Ethereum is that it is programmable and lets developers create apps or dApps (especially financial apps!) as they are famously called. Thus, it has led the IT and Blockchain companies to a completely new passageway from Blockchain app development to dApp development.
Now, let’s move on to the idea of Smart Contracts and see how it will change the way things work in legal scenario. How they are useful and what problems do they solve?
You will be quite surprised to know that smart contracts were used long before you can imagine. It may have become dominant on the scene recently but it was in 1997 that a person named Nick Szabo, who was a computer scientist, law scholar, and a cryptographer, came up with a smart contract best-suited for those times. [S2] He was on the lookout of a smart ledger system that he could use to store the contracts safely.
Isn’t it interesting?
The only difference these days is that things have gone digital. To fit to this age, a smart contract- in simple terms, can be called as a tiny computer program that is stored inside Blockchain, which comes with some specially inherited beneficial features, discussed below.
How Smart Contracts actually work? Why trust them?
We would start with a simple example.
Suppose there is a crowdfunding platform that acts as a mediator between the project owners and supporters. It is a great concept to encourage the eager benefactors.
But, there’s a twist to it.
The project owners can only get the total amount donated only if they reach their goal. If they are not able to reach the goal, then what? The money goes back to the supporters or it gets refunded to their owners.
But, what if the mediator is not trustworthy?
The money donated by the supporters will not be refunded and dispute will arise. Of course, this needs to be solved!
Smart contracts have arisen on the scene as a life-saver. Suppose, a smart contract is written in Solidity – which is Solidity Blockchain development in Ethereum programming language. When the goal of the project is reached, the money will automatically be transferred to the project owner and there is no involvement of the mediators and no possibility of conflict arises.
However, if the project fails to reach the goal, the money will go back to the supporters automatically. Pretty awesome, right? There are two major benefits of this system. First, it is immutable. Second, it is distributed. No tampering is possible as the output is validated by everyone on the network to finalize [S3] it.
We’ll discuss about the usability areas of Solidity and Ethereum programming in finance and insurance sector in upcoming blogs. Watch this space for more!
Now that you know the handful of benefits of Smart Contracts, you can hire a Blockchain app development company for similar projects. Since no one is in control of the money, it is very much safe and trustworthy to get Smart Contracts developed by experts.
SoftProdigy Solutions is a trusted Solidity development company for global clients. We deliver output-oriented solutions written, tested, & deployed to perfection.