Ethereum truly revolutionized the blockchain industry by implementing smart contract support on its network. Smart contracts are agreements where parties set the parameters in advance. They use code to write down the agreement details on the network. Once signed and activated, a smart contract will self-execute when it recognizes the conditions are met. There’s no intermediary, and everything is automatic. Thanks to this, smart contracts are trustworthy, transparent, and efficient.
Technical Features of Ethereum Smart Contracts
Ethereum uses the Solidity programming language when creating smart contracts. The language is similar to C++ or JavaScript. Its biggest advantage is that it’s developer-friendly and can serve to create useful tools to design smart contracts. Thanks to that, Solidity users can create advanced decentralized apps for the Ethereum blockchain. You can find numerous dApps in different niches.
Another important feature is the runtime environment called the Ethereum Virtual Machine. That’s where smart contract execution occurs. Imagine the EVM as a large computer with no central authority. It utilizes numerous network nodes to run. Once users request smart contract deployment, EVM ensures that the details are valid and immutable.
EVM requires computational power to run and execute smart contracts. It’s why “gas” fees occur on the network. Users pay for these charges in ETH, which is Ethereum’s native token. The gas fee will depend on the network congestion and the smart contract complexity. However, it’s necessary to ensure optimal network function and security.
The crucial benefits delivered by smart contracts include decentralization, immutability, transparency, and security. Once it’s written on the blockchain, it’s impossible to alter this smart contract code.
How to Create Your Own Ethereum Smart Contract
Ethereum creators tried hard to offer developer-friendly tools that make creating smart contracts simple. It’s important to assess the tools and make the right selection. Going with RemixIDE and similar development environments is an expert recommendation.
We suggest you start slowly from simple decentralized apps by using the provided templates. Don’t forget to buy Ethereum with PayPal or other payment methods because you will need it for gas fees. Now, here are the steps to follow to build smart contracts.
1. Setting Up Your Development Environment
It will be necessary to get yourself familiar with the Solidity programming language. You can pick the Hardhat or Remix IDE development environment that serves particularly for contracts written using Solidity. You can write and deploy the code by using either of the recommended development environments.
You will also find MetaMask useful. It’s a crypto wallet and a browser extension that can communicate with the Ethereum network. You can install it for free and connect it to test networks. It ensures you can see how your contract works without actually paying the gas fees.
It’s necessary to use a blockchain developer platform like Alchemy to connect to the Ethereum blockchain. The next step is to create an app in the developer platform. You will find an option for that on the developer platform. Name the app at this point.
The next step is to have an Ethereum wallet, such as MetaMask. It will manage the address of your Ethereum account. Also, make sure to choose a test network like Sepolia to try the smart contract without actually spending the coins.
You can use the test network to send yourself some fake Ethereum. Sepolia has this option, and sending the funds can take about 15-45 minutes, depending on the congestion. You also need to initialize the project and set the development environment (if you already haven’t).
2. Writing Your First Smart Contract
After you create a project and its folders, it’s time to write the contract. You can use a code editor like VSCode. You will create a new file HelloWorld.sol, and here’s how the Solidity code can look:
You can use the update function to adjust the stored message after the contract creation.
3. Testing and Deploying on the Mainnet
You can compile the contract in a development environment. If you use Hardhat, here’s what to write in the command line:
“npx hardhat compile”
Now, it’s necessary to create a deployment script. You can use the smart contract guides to learn more about how to do this. Here’s what to run to deploy the contract:
“npx hardhat run scripts/deploy.js –network sepolia”
You will receive the confirmation that everything went smoothly.
How Smart Contracts Reduce Risks for Diamond Hands
The term Diamond Hands refers to those who keep their cryptos in their wallets for a long time. They can benefit from smart contract features. For starters, automated execution will ensure that you only sell the currency at the specified point. It will prevent you from acting emotionally or hurry up with selling before you planned.
You can also rest assured that the smart contract will be honored. There’s no intermediary, so automation guarantees that nobody and nothing can tamper with the conditions. Finally, a smart contract follows the parameters to the smallest detail. It ensures that you won’t forget to sell at the desired date and eliminates human errors when the transaction time comes.
What to Expect from Smart Contracts in the Future
Smart contracts have an exciting future ahead. The technology is only progressing, so we can expect enhanced scalability. That would secure faster and more affordable transactions. Developers are looking to achieve cross-chain compatibility, and AI integration presents an exciting opportunity for that. All these could widen use cases and applications of smart contracts in real estate, decentralized finance, and other industries. If you are looking to start using smart contracts, make sure to use a safe exchange to acquire ETH. Combined with a secure wallet, it will ensure your funds for gas fees are managed and processed safely.
