Blockchain Based Smart Contracts; Considerations For Implementation
The flurry of blockchain applications and use cases that have burst into the marketplace during 2020 and 2021, from decentralized finance (DeFi), decentralized exchanges (DEXs), and non-fungible tokens (NFTs) have captured the attention and investment dollars of the marketplace.
Under the radar, however, a different blockchain application continues to garner relatively little attention, but is playing a critically important role enabling many of these higher profile applications; smart contracts. Underlying this entire idea is the reality that blockchains, in and of themselves, are records of transactions and other data that have previously occurred. These records and information contained therein are (depending on who is asked) immutable and/or extremely difficult to hack or otherwise breach, but are still just records of previous transactions.
The real question then becomes, how can this information and these blockchains successfully interact with other technology systems, and how can the data contained therein have its utility maximized? Specific answers will inevitably vary, especially for permissioned, enterprise, or hybrid blockchains, but a commonly used interface is a smart contract. There may still be some confusion as to what exactly a smart contract is, or some negative connotations linked to smart contracts (like the infamous DAO hack), but these are important tools to understand.