A key building block of the cryptocurrency ecosystem, smart contracts form the basis for many decentralized applications (dApps).
These programs run when predetermined conditions are met to help automate workflows, execute agreements, and carry out other essential tasks that can be governed with “if/when…then…” statements.
Programmable by developers, smart contract are transparent, trustless and autonomous. They can also be reversed or modified. Smart contracts are a powerful tool for reducing the number of intermediaries and third-parties. This code defines the terms of an agreement.
Legacy Industries Remain Interested In Harnessing Smart Contracts
It is not surprising that smart contracts have many benefits. Many companies look to the technology for optimizing their operations.
According to research published December 20,21, the market for smart contracts worldwide is projected to grow to $770.52 Million by 2028 from $145 Million in 2020.
As businesses seek to track their products better, smart contracts are already making waves in the supply chain. Epazz Inc, a crypto and blockchain mobile app developer announced that it would launch the StreamPay Blockchain Smart Contracts App in summer 2021. Smart contracts can be used to monitor raw materials and their transformation into final goods by supply chain managers, according to the company.
Some in the legal sector have been drawn to smart contracts because of their traceability. Many believe that smart contracts can build upon the introduction of e-signatures to legal documents and create situations where lawyers fees could be decreased by making arrangements with smart contracts.
In 2017, Arizona Governor Doug Ducey signed HB2417, which stated that smart contracts are legal and enforceable according to state law.
Ethereum is still the best blockchain to run smart contracts. Smart contracts are run on Ethereum Virtual Machine (EVM), which is a distributed, global computer that Ethereum nodes use to exchange power for Ether tokens.
Anyone can code a smartcontract and have it deployed to Ethereum as long they have sufficient ETH.
An essential attribute for new smart contract innovation is EVM compatibility
For teams looking to recruit users, EVM is still the best platform for smart contracts. Therefore, it remains vital that blockchain compatibility is maintained. The amount of gas required for execution and verification of contracts is reduced by compatibility.
Lycan Chain is an example of an emerging EVM compatible blockchain, with its own secure consensus system. Developed by the team who introduced Werewolf, one of the world’s first DeFi ecosystems, Lycan Chain focuses on alleviating scalability issues and fostering full smart contract adoption.
Compatible with EVM and interoperable with Web 3.0, developers can rely on Lycan Chain’s unique hybrid proof-of-stake architecture to quickly integrate dApps onto the blockchain.
The Lycan Chain team was named after the Lycan species, which is known for speed and invincibility. They announced that the Testnet would be launched by the Lycan Chain team in March 2022.
EVM compatibility continues to be of paramount importance as smart contracts are the heart of an ever-changing, dynamic blockchain industry. It is important that developers can quickly develop scalable and secure solutions.