No doubt, blockchain is the most revolutionary tech of this era. It has enabled users to make transactions securely. One example is Bitcoin. However, another technology is widely getting attention. Ethereum- a blockchain-based tech that is opening up more opportunities. One such opportunity is smart contracts. In this blog, we will learn how to create a smart contract.
While we cover a short note on how to create a smart contract, read about this whole process in detail.
Understanding the Smart Contracts
Smart contracts are self-executing protocols that are implemented in the blockchain. These contracts are immutable once deployed. Meaning they cannot be altered or changed. Once the agreement details are matched, the contracts are automatically executed. Nowadays, many businesses are starting to integrate smart contracts into the system. The reason? Well, there are many.
Why Should You Integrate Smart Contracts Into the Business
Adding a smart contract into a business can potentially save time and operating costs. These contracts have gained a lot of attention in the crypto world. And, now, they are coming to local businesses. It is expected that, in the future, smart contracts will replace traditional legal contracts. That is all because of the benefits this tech has to offer.
As mentioned, smart contracts are self-executory once the terms of the agreements have been met. That diminishes the need for middle parties such as contractors and lawyers. Since there are no humans involved, the transactions will be more efficient.
Smart contracts are based on blockchain technology, and blockchain is all about transparency. Once deployed, every party involved in the process will be able to see the transactions. This will lead to more trust and reduce the risk of fraudulent activities.
In recent times, the world has witnessed many hacking cases where hackers penetrate transactions. Well, that is not the case with smart contracts. This blockchain technology is robust. After the deployment, no one can alter the token, making it hard for hackers to tamper with it.
Smart contracts are programmable contracts that can be programmed to the specific needs of the user. This reduces the risk of human error, allowing the terms to be executed accurately.
If you remove the middle parties and automate the tasks, you can save huge transaction fees. Moreover, there will be no human error, meaning no troubleshooting fees also. Well, smart contracts can offer that.
This, along with many reasons, enables a company to create a smart contract on the blockchain. If done right, smart contracts will completely replace the transactions, allowing secure and accurate transactions.
How To Create A Smart Contract in 5 Steps
In this part of the blog, we will tell you how to create a smart contract on Ethereum. Using this, you will create your smart contract without any effort.
Step 1: A Solid Business Idea
A solid business idea is essential for any business. It also applies to the smart contract niche. This is the step where you will notice the existing problems users are facing and come up with a solution. At this point, it is important to consider the budget, time, infrastructure required, and marketing techniques.
Gather the data about existing apps, develop an outline, and move on to the next step.
Step 2: Creating MVP Token On Solidity
Solidity is the tool used for creating the smart contract. In this stage, develop a baseline of your smart contract. This code doesn’t create a full fledge contract. It only serves as an example of how to add certain features to your designed smart contract.
Step 3: Leveraging Ethereum Testnet
Once you make an Ethereum smart contract, it is time to deploy it. However, you also need to test it and see whether it is working as intended. For that, Testnet comes into play. Testnet is the same as Mainnet, but it has lower traffic, making it feasible to test the features before deploying them for the users.
Step 4: Creating The UI
For your users to interact with your smart contract, you need to design the DApp interface. The most simple way to do that is to create a web page using Etherscan. If you are not a fan of that, there is always an option of using Truffle’s framework or OpenZepplin’s UI library.
Step 5: Deploying On Ethereum Network
The last step is deploying the created smart contract on the main Ethereum network using the ERC20 standard. This will enable users to send the ether address, helping in creating new tokens.
How to build a smart contract with protection against cyber attacks
When creating a smart contract, there are several steps you can take to ensure protection against cyber attacks:
Choose a secure programming language: Choose a programming language that is known for its security features, such as Solidity or Vyper.
Perform code audits: Have your code audited by a reputable third-party firm to identify any vulnerabilities.
Implement access control: Implement access control mechanisms to limit who can modify the contract and what they can do.
Use secure development practices: Follow secure development practices such as code reviews, version control, and testing to minimize vulnerabilities.
Use well-tested libraries: Use well-tested libraries for common functions instead of writing your code, which may have unknown vulnerabilities.
Implement error handling: Implement error handling to prevent unexpected behavior in the contract.
Use multi-signature wallets: Use multi-signature wallets to protect against unauthorized transactions.
Keep your software up-to-date: Keep your software and tools up-to-date to avoid known vulnerabilities.
Use secure storage: Store sensitive data and private keys in secure storage and avoid using centralized storage solutions.
Monitor the contract: Regularly monitor the contract for unusual activity and implement procedures for responding to security incidents.
Congratulations, you are successfully able to create a smart contract. In no time, the users will be leveraging your token and performing the transactions.