Among the many accusations leveled at cryptocurrencies, the lack of economic fundamentals appears to be the most persistent. But, supporters of alternative cryptos such as Cardano, argue otherwise based on their unique perspective on fundamental blockchain technology. Cardano and company appear set to usher in a new era of decentralized applications, thanks to the emergence of smart contracts—or the capacity to facilitate transactions without the use of a human middleman.
The cardano smart contracts will function in the same way as Ethereum smart contracts do. They will function as executable programs that will run on the Cardano blockchain.
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Smart contracts serve as digital contracts or guarantees between two parties. When the prerequisite requirements (or inputs) are met, outputs (or transactions) are executed. When the prerequisites are met, the transaction is carried out automatically. These transactions and their information will thereafter be stored in perpetuity on the Cardano blockchain.
One of the benefits of smart contract integration is the elimination of the need for persons, or middlemen, to carry out or maintain contracts, as is the case with traditional agreements. These factors frequently slow down the procedure.
The contracts’ details are kept on a decentralized blockchain. This eliminates the potential of tampering or avoidance by third parties, while also increasing transparency and traceability.
There are some risks associated with the inability to amend smart contracts. If the smart contract contains faults or problems, they can be difficult to change. Contracts are also vulnerable to loophole exploitation. Of course, these are not unique to smart contracts, but they do put additional weight on programmers rather than, say, lawyers.
Cardano Smart Contract Programming Language
- The cardano smart contracts will be programmed in one of three languages: Plutus, Marlowe, or Glow.
- Plutus, according to IOHK, is a “purpose-built smart contract development and execution platform” that works both on-chain and off-chain.
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- Cardano’s domain-specific language (DSL) is Marlowe, which is mostly used for financial contracts, whereas Glow is a DSL used for developing decentralized apps (dApps).
- Haskell, a functional, research-driven programming language with roots in academia and industry, powers Plutus and Marlowe. This has earned the language a reputation for code robustness and dependability, which may aid in avoiding the weaknesses and risks of smart contracts.
Examples of Cardano Smart Contracts
- Because the Alonzo hard fork has yet to go live, no smart contracts are currently running on the Cardano main net.
- IOHK, on the other hand, has launched the Marlowe Playground, a browser-based editor for prospective Marlowe smart contracts. The Marlowe Playground contains several smart contract examples that provide some ideas for future financial applications, including escrow contracts, loans, and basic swaps.
- IOHK also published the Plutus Playground, which includes its examples. Smart contracts for a game, a vesting plan, and a crowdfunding endeavor are among them.
- Smart contracts have a plethora of other possible applications, including financial transactions, insurance, voting, and even digital identity cards.
