Comment
Author: Admin | 2025-04-28
Like any contract, a smart contract explicates the terms of an agreement between multiple parties. A contract is ‘smart’ if its terms are embedded in code that runs on blockchain technology. Currently, contracts are judged and executed by people. As such, they are vulnerable to human error, bias, and trickery. Smart contracts allow all parties to consent to an utterly objective ‘third party’: the smart contract executes the contract code immutably, reliably, and securely.Bitcoin Reigns Supreme Again?Bitcoin isn’t well-known for its ability to support smart contract capabilities (although it’s been argued that Bitcoin transactions themselves are a kind of smart contract execution, but that’s another story). Alt coins such as Ethereum and Solana are more associated with smart contracts than Bitcoin is, but this could change in the coming years–thanks to Stacks.Stacks is a blockchain on which Bitcoin smart contracts live. Because the security and monetary protocol of alt coins are often lacking, smart contracts that rely on them are subject to the same criticisms. Bitcoin-based smart contracts, on the other hand, do not suffer such drawbacks. As an anonymous writer put it, “Bitcoin smart contracts, like other smart contracts, ensure trustless transactions. But beyond that, those transactions ultimately settle on Bitcoin, making the history of transactions more durable through Bitcoin’s battle-tested security.”Stacks employs a programming language called Clarity that developers can use in crafting smart contracts. Clarity is well-known to be easily debuggable, and it is ‘readable’ by people. In short, Clarity is easy for developers to use, assess, and improve their smart contracts. Perhaps surprisingly, Bitcoin smart contracts are more cost-effective than smart contracts with other cryptocurrencies. This is largely since Bitcoin transaction fees are lower than those of competitors. For example, in 2022, Bitcoin’s typical transaction fee has reached a high of $4.46, while that of Ethereum has reached $52.46. Furthermore, Stacks smart contracts settle on Bitcoin in bulk, which further reduces the per-transaction cost.Executing smart contracts involves running the code, verifying transactions, and keeping tabs on who owns what. This all requires computational effort and time, which are not free. Therefore, miners who keep smart contracts
Add Comment