The DeFi industry relies heavily on smart contracts. As such, this article takes a closer look at some of the most popular smart contract frameworks for developers to make the most of blockchain technology.
Smart contracts have pretty much become an integral part of the “blockchain offering” alongside cryptocurrencies. However, we are at a weird conjuncture wherein we are either overestimating or underestimating the real capabilities of smart contracts. In this article, let’s gain a clear perspective of what they are and how they can revolutionize different industries and sectors as we move towards the future. So, how do smart contracts work? Let’s begin with the basics.
Smart contracts are some of the most fascinating and important inventions at blockchain developers' disposal. Essentially, smart contracts allow programmers to develop self-executing code that can be used in several fields such as decentralized finance (DeFi). This technology has the potential to save a huge amount of money for businesses and organizations all over the globe. As this technology has vast potential, several smart contract platforms compete in order to offer developers the best tools.
As much as the growing popularity of blockchain and smart contract platforms is good for the crypto industry, it also contributes to certain problems. Most notably, the demand for decentralized applications (dApps) and decentralized finance (DeFi) is at a crucial stage where it outweighs the ability to supply. A simple economic analysis of the supply and demand curve, therefore, results in a skewed equilibrium. The disruption between supply and demand, in turn, creates a situation where we see congested smart contract networks.