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If you have wondered about the seamless functioning of decentralized platforms, then the credit goes to smart contracts. Smart contracts are more or less similar to a digital agreement where conditions are pre-defined and executed when the terms are satisfied. As they are completely decentralized, they are utilized in crypto DeFi platforms, gaming, real estate, finance, etc, to automate the conditions. This paved the way for the creation of smart contracts as a potential business idea for newbie startups.
However, the most anticipated query among newbie startups is, ‘How to create a smart contract?’
The smart contract development isn’t a complex process unless you get guidance from a reputable smart contract development firm. In this guide, we will walk you through the technical aspects of creating a smart contract, tech stack resources, and their wide range of use cases. Let’s get a detailed insight into the working process.
How Do Smart Contracts Work?
As smart contracts are digitalized agreements, they work in a decentralized manner. The conditions and the norms are already coded or programmed into the smart contract. The smart contracts are executed when the predefined conditions are met. For a detailed understanding, we have illustrated with an infographic image.
Before delving into the smart contract development process, it is important to know about their use cases of blockchain applications. This helps you easily define the smart contracts’ purpose to the development company.
Top Smart Contract Use Cases In Blockchain Applications
Smart contracts are primarily utilized in blockchain applications for secure, reliable, and automatic transactions. The smart contracts are programmed based on the need, purposes, etc of the blockchain technology. Through creating potential smart contracts, the blockchain technology won’t rely on middlemen or intermediaries for approval.
NFT Marketplaces
NFTs, or Non-fungible tokens, have a crazy fanbase where the real-world assets, art, collectibles, and even music albums are turned into crypto tokens. They are minted, bought, traded, and sold in popular NFT marketplaces, which are decentralized. Potential smart contracts are integrated for transferring ownership, NFT royalties, and verifications.
Decentralized Exchange Platforms (DEX)
Unlike centralized exchanges, the decentralized exchange platforms work completely based on the smart contract functioning. Smart contracts are pre-defined with the transaction conditions, limitations, and norms. Through this, hassle-free DeFi lending, staking, yield farming, etc, are done. With the right smart contracts, the DEX development can be done without any technical hassles.
Decentralized Autonomous Organization (DAOs)
The decentralized autonomous organizations define the specified set of DAO logic, rules, and conditions on the smart contracts. Along with that, the smart contracts fetch external data from oracles, where the real-world data is transferred through APIs for instant and reliable functioning. Through these, the voting system, rule changes, and fund management are done within the DeFi platform without any intermediaries.
Crypto Wallets
DeFi or decentralized crypto wallets are software that are primarily utilized for storing and trading cryptocurrencies. With the help of smart contract integration, the crypto user doesn’t need to rely on approval for every single transaction. P2P transactions can be done within a few seconds without any hassles.
Crypto Token Creation
As cryptocurrencies have turned into a powerful investment option, smart contracts are used for crypto token development. Crypto tokens can be minted by incorporating various functionalities, features, and security protocols through the integration of smart contracts.
Through these common ways, smart contracts are highly beneficial in the digital landscape. With minimal effort and cost, startups are focusing on creating profitable smart contracts. This is the right time to know about the smart contract development process in detail.
How To Create A Smart Contract?
We have been enlisted in the technical aspect of creating a smart contract with high-tech features and security. To ensure secure and seamless smart contract creation, pick the best blockchain development company in the market. As they possess specialized smart contract developers, designers, and technicians, the creation of smart contracts is made simple and easy. Let’s delve deep into the 6 simple steps to create a smart contract.
Define the contract logic
The foremost step in creating a smart contract is defining the purpose, needs, logic, etc. Through this, both the startup and the smart contract developer will get a detailed outlook on the smart contract development process. The planning phase must include,
- A reputed team – Hire a skilled set of smart contract developers, testers, and a project manager to get along with the smart contract development project.
- Resources – Consult with experts to get the essential tech stack, resources, tools, etc, to kickstart the project.
- Blockchain Network – Based on your business needs, gas fee budget, and purpose, choose a potential blockchain network.
- Roadmap creation – Plan the milestones of creation, creation phase, testing, and launch phases with the developers to ensure a proper development process.
- Budget Preparation – Estimate the overall cost budget, time constraints, and other expenses to create a smart contract.
Programming Of Smart Contract Codes
Once after fine-tuned the development roadmap, you can kickstart the smart contract coding process. Each blockchain network has a different environment for hassle-free smart contract development. Prefer to utilize an open-source application where the cost will be affordable for startups that are new to the digital industry. This phase includes,
- Choice of IDE – Select the best Integrated Development Environment (IDE) platforms for creating the smart contracts.
- Programming Language – Pick the perfect programming languages like Solidity, Rust, or Vyper for smart contract coding.
- Write the Codes – With the open-source applications, program the conditions into smart contract codes.
Testing The Smart Contracts
Once after writing the smart contract codes have been written, they have to be checked and tested for seamless performance. Usually, specialized Testnets are utilized to test them. Numerous Testnets are there to check the smart contract functioning and coding to avoid glitches. The testing process ensures the functionality of the smart contracts under different circumstances, conditions, and critical times. In this phase,
- Vulnerability Check – Security features, basic functions, and protocols are checked for fraud-free functioning.
- Framework Check – Frameworks like Hardht, Truffle, Foundry, etc, are primarily utilized for automatic testing.
- Unit Testing – Each desired function or conditions are checked.
- Integration Testing – Smart contracts are tested to ensure their compatibility with different modules.
- Mock testing – Even mock smart contracts are created beforehand for a successful development process.
Compile The Smart Contract
The important step in creating smart contracts is compiling them. Compiling is the process of converting the readable bytecodes into a machine-readable contract code. Through this, the pre-defined conditions of the smart contracts are understood by the blockchain to execute them.
- Two different outputs – In this process, the compilation testnet offers bytecode, Application Binary Interface (ABI), blockchain gas estimation, etc
- Ready-To-Deploy – Only after compiling, smart contracts can be deployed into the blockchain network.
- Compile Optimization – Compilation codes can be optimized to reduce the unnecessary gas fees.
Smart contract deployment
After the compilation and testing process, smart contracts are now ready to be deployed into the blockchain network. Then, the newly created smart contracts can be utilized by crypto users or in decentralized applications. Also, the smart contracts can be interacted with by users or other applications. In this phase,
- Final Check – Smart contracts are checked finally to ensure smooth functioning.
- Mock Release – Mock smart contracts can also be deployed to configure the efficiency of the smart contracts.
- External Interaction – Ensure whether the newly created smart contracts can interact with external applications and sources for proper functioning.
- Deployment Cost – The gas fee for deploying the smart contracts is paid to the desired blockchain network.
Smart Contract Auditing
Even after the successful launch of the smart contract, it is important to check the parameters, conditions, and other logics of the smart contracts. Regular updates and upgradation have to be done to remove vulnerabilities. The monitoring phase helps startups identify the potential threats or technical bugs that can be avoided initially.
- Ensure Parameters – Logical flaws, loopholes, and code mistakes are detected to configured.
- Smart contract Audit – The specified parameters have to be checked in external environments for smooth functioning.
- Manual or Automated Analysis – The auditing process can be done either manually or in an automatic way.
This is how smart contracts are created easily with the help of a smart contract development company. For any decentralized application, importance has to be given to smart contract creation, as they are the base for automating transactions.
As we have enough knowledge on ‘how to create a smart contract’, it is the right time to know the technologies, tools, and environments that are used in smart contract development.
Essential Tech Stack To Create A Smart Contract
Various kinds of tech stacks of preferred for creating a smart contract based on the business needs and specifications of the applications. As they are the building blocks, special attention has to be given to them.
Programming Language
For writing the smart contracts, programming languages are the primary source. Some of the languages that are utilized to create a smart contract are,
- Solidity – Ethereum Blockchain
- Rust – Solana
- Vyper – Pythonic alternative
- Move – Sui Blockchains
Integrated Development Environment
Integrated development environments, or IDEs, are utilized for writing, editing, and debugging. Some of the popular IDEs are,
- Remix IDE
- Hardhat
- VS Code
Development frameworks
Unlike IDEs, the development frameworks are utilized to structure the smart contracts for seamless functioning. They are used to compile and conduct the testing process. Some of them are,
- Truffle
- Foundary
- Brownie
Testing Tools
As testing the smart contract is an important process, various testing tools and platforms are utilized. Some of them are,
- Mocha
- Chai
- Forge
Wallets
The smart contracts are connected and interact with crypto wallets. Even mobile applications can be connected with dApps. Some include,
- Metamask
- Wallet Connect
- Web3.Js
Auditing Tools
To quality check the smart contract parameters, various kinds of auditing tools are used. Some of them are,
- Slither
- Mythril
- Tenderly
These are some of the popular tools and tech stacks that are used to create a smart contract to avoid bugs and technical glitches. When speaking about tech stack, startups have to pick the best blockchain technology.
Which Blockchain Is The Best Choice To Create Smart Contracts?
Blockchain technology ensures transparency, reliability, security, etc. We have given the top and best blockchains that are widely used to create smart contracts.
Ethereum
Ethereum is the widely preferred blockchain network to develop smart contracts for various applications. The native programming language, Solidity, is supported by the Ethereum blockchain. They are best for creating NFT marketplaces, DeFi platforms, and other industry-based applications.
Polygon
With Ethereum blockchain compatibility, Polygon is utilized primarily for various applications across industries. Smart contract creation has more easy with the Polygon network’s low fee infrastructure.
BNB Chain
The BNB chain also has Ethereum blockchain compatibility, in which smart contracts can be created with low fees and faster transaction speed. This blockchain network is primarily utilized for creating dApps, tokens, and other gaming apps.
These blockchain networks are highly preferred and utilized for creating smart contracts. The blockchain networks help smart contracts for future scalability and sustainability. In the next section, we have sorted out the important question of…
How Much Does It Cost To Create A Smart Contract?
Creating a smart contract varies based on various factors like business needs, purpose, etc. This results in the variation of the cost estimation. But the average cost to create a smart contract ranges between $15,000 to $30,000. If you want to get a detailed and accurate cost estimation to create a smart contract, then approach the right smart contract development company.
Pixel Web Solutions – Your Reliable Partner To Create Smart Contracts
Pixel Web Solutions, a notable smart contract development company, will help you in creating smart contracts for business across industries. We comprise a skilled set of smart contract developers, blockchain developers, business consultants, etc You can trust us to make your business reach heights. We ensure to offer every nook and corner of smart contract development services from consulting to post-launch. Make an appointment with our team to succeed in your crypto business!!