Smart Contracts Platforms: How Do They Work and Why Choose Them
Blockchain technology is popular for various reasons, including its ability to execute smart contracts. Smart contracts are small programs on a blockchain executed when specific conditions are met. There are several smart contract platforms in existence today. Some of them worth mentioning are Avalanche (AVAX), Ethereum, Solano, Polkadot, etc.
So, how does Avalanche (AVAX) work and why should you choose a smart contract platform? Read on, to find out.
How do Smart Contracts Work?
To understand the working of AVAX, you should know the basics of smart contracts and their execution. The smart contracts work by simple statements – if/when … then. These statements are encoded in the blockchain. Then, a network of computers executes the smart contracts when the preset conditions are met and verified.
The actions of a smart contract could be registering a vehicle, the release of funds to the appropriate parties, issuing a ticket, or sending notifications. Once the smart contract is executed, the blockchain is updated, and no changes can be made to the smart contract. Therefore, only the permitted parties for smart contracts can see the results.
A smart contract can have many stipulations to satisfy so that the participant ensures a particular task is completed satisfactorily. To create a smart contract and define the conditions for its execution, the participant needs to understand how transactions and data are presented on the blockchain.
The participants can then define if/when… then rules governing smart contracts’ execution. Other important aspects of smart contracts are that the participants should explore all possible exceptions and define a framework to resolve the dispute.
All smart contracts, including AVAX, work on the same principle though the underlying technology of the blockchain and the smart contract might differ.
Who Can Create Smart Contracts?
Developers create smart contracts. However, today you can create smart contracts with the help of templates, web interfaces, and online tools.
Now that you know the answer to, “how does Avalanche (AVAX) work?,” let’s understand why you should choose it for your smart contract.
Why Choose AVAX?
One of the problems with blockchain is the lack of interoperability. Most blockchains that exist today were designed to function as standalone systems. It means they cannot communicate with other blockchains, limiting their usefulness. AVAX is expected to change that.
AVAX developers have taken a different approach to address problems with interoperability, usability, and scalability.
AVAX allows blockchains to communicate with each other and share data. Even older blockchains designed to work as standalone systems can effectively “interoperate” with newer blockchains built on advanced blockchain technology.
As mentioned earlier, the blockchain technology central to the mining of cryptocurrencies needs tremendous energy and computing power. Due to the standalone nature of blockchains, these networks are not scalable, and there is a limit on the resources like computing power.
With the arrival of AVAX, blockchains can connect to the ecosystem and benefit from the incredible processing capacity of AVAX and other connected blockchains. The platform was designed to be scalable and has sub-second transaction times that make smart contract execution significantly faster.
The Avalanche is new-age blockchain technology that aims to eliminate all problems that limit the use and execution of smart contracts on different platforms.