In this dynamic blockchain landscape, businesses are increasingly turning to custom software development firms specializing in Ethereum to harness the full potential of smart contracts. These firms leverage Ethereum's capabilities to create tailored solutions that optimize supply chain management, facilitate seamless trade, and revolutionize financial transactions, aligning with the evolving needs of industries across the board. Ethereum's smart contract innovation has become a cornerstone of success in this ever-evolving tech domain.
Developing smart contracts on the Ethereum blockchain requires specialized skills, but with the emergence of user-friendly blockchain app builders, the process has become more accessible to a broader audience. These blockchain app builders simplify the creation of smart contracts, enabling developers and businesses to harness the power of decentralized automation. In this blog, we'll explore the significance of Ethereum smart contracts and how blockchain app builders are democratizing their development.
When considering the significance of Ethereum smart contracts, it becomes evident that they have the potential to revolutionize various industries, including the eCommerce sector. An ecommerce website development company can leverage these smart contracts to create secure, automated payment systems, eliminating the need for traditional intermediaries and streamlining transactions.
How to Create a Smart Contract on Ethereum?
As an automatic self-executing agreement, it defines rules & enforces them automatically through the codes. Moreover, interactions with smart contracts are irreversible and they can’t be erased by default. Developing smart contracts on Ethereum is an excellent step for those who just start blockchain businesses. Here are the 6 main steps to create Ethereum smart contracts.
Step 1: Create a MetaMask wallet
MetaMask works like a wallet as well as an Ethereum browser. It usually allows you to connect with dApps and smart contracts without downloading any software or blockchain. You need to add the MetaMask extension in your Chrome & enable it. Once it’s properly installed, create a MetaMask wallet & agree to the terms & conditions for further proceeding. After that, you have to make a strong password & then you will get a secret backup phrase to back up & restore your account. You have to store the phrase safely & move ahead to the next step.
Step 2: Select the test network
In this step, you may find the following test networks in your wallet. They include:
- Ropsten test network
- Kovan test network
- Rinkeby test network
- Goerli test network
Note that the above-mentioned networks are only for testing purposes; note that on these networks, Ether doesn’t have real value.
Step 3: Add dummy ethers
In case you would like to test a smart contract, you have to add some dummy ethers in the MetaMask wallet. For instance, if you need to test a smart contract with the help of a test network, choose it & you may get 0 ETH in your Ethereum account as an initial balance.
To add dummies, select “Deposit” & click the “Get Ether” button to proceed further. Once you click the “request one ether from the faucet” button, 1 ETH will be added to the MetaMask wallet.
Step 4: Use editor remix for writing the smart contract
Once the Ethers are successfully added to your wallet, you can write smart contracts in Solidity. Generally, Remix Browser IDE is used to write solidity code. The Remix is a great choice to write smart contracts as it has a number of user-friendly features & offers a development experience. The Remix is used to write smaller-sized contracts and its common features are:
- Warnings such as unsafe code, gas cost, overlapping variable name checking, etc.
- Error highlighting & syntax
- Functions with Web3 objects
- Static analysis & integrated debugger
- Integrated testing
- Deployment environment
- Deploy to MetaMask directly
Step 5: Create a .sol extension file & ERC20 tokens respectively
ERC20.sol is a basic template for ERC20. Now, open Remix & select the plus icon to make a .sol extension file. & then choose a compiler version from the Remix browser for compiling the solidity smart contract code.
pragma solidity ^0.4.0;
import “./ERC20.sol”;
contract myToken is ERC20{
mapping(address =>uint256) public amount;
uint256 totalAmount;
string tokenName;
string tokenSymbol;
uint256 decimal;
constructor() public{
totalAmount = 10000 * 10**18;
amount[msg.sender]=totalAmount;
tokenName=”Mytoken”;
tokenSymbol=”Mytoken”;
decimal=18;
}
function totalSupply() public view returns(uint256){
return totalAmount;
}
function balanceOf(address to_who) public view
returns(uint256){
return amount[to_who];
}
function transfer(address to_a,uint256 _value) public
returns(bool){
require(_value<=amount[msg.sender]);
amount[msg.sender]=amount[msg.sender]-_value;
amount[to_a]=amount[to_a]+_value;
return true;
}
}
Step 6: Deploy the contract
At the right-hand portion of the Remix window, you have to click the deploy button to deploy the contract successfully. You need to wait to complete the transaction. After that, the smart contract address would be popping up on the remix window. Once done, all ERC20 tokens will be submitted to the user’s wallet. If you want to check these tokens in the wallet, open the MetaMask window & enter the contract address by clicking add tokens.
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Smart Contract Business Ideas That Will Shape The Future
Technically, Ethereum smart contracts examples vary from one sector to another. They usually depend on how the companies are utilizing them. The technology behind the smart contract has been on the radar of any investor. Here are some smart contract ideas that help in several fields.
- Supply chain management
Many big organizations worldwide deploy Ethereum contracts to boost the entire system of their supply chain management. It always allows the companies to monitor every step in the production procedure, from raw material collection to final delivery. This effectively enhances efficiency & minimizes unwanted expenses due to delays in delivery or product defects.
- Healthcare data management
Healthcare is another popular industry, where Ethereum smart contracts play a huge role. With these contracts, many well-known healthcare firms implement national databases to securely tokenize all medical records & make them widely available for their patients. Moreover, smart contracts also help to handle all patient information very securely across several insurance companies and health care providers.
- Smart contracts insurance
Smart contracts on the Ethereum platform are mainly used in insurance policies for minimizing fraud cases & managing automatic claims administration. With blockchain, it’s possible to make a consistent record of every transaction that is related to insurance policies including premiums and claims payments. This makes transparency for both insurers and policyholders. It also reduces the risk of fraud & keeps the process simple to manage finance.
What is the Ethereum Blockchain Platform?
A blockchain platform allows developers to make & execute smart contracts. Ethereum is a very popular blockchain platform that executes arbitrary code so that you may perform any kind of program on Ethereum. This blockchain platform has a distributed infrastructure that effectively facilitates you to finish projects with the help of smart contracts.
- Make your cryptocurrencies: You can make a tradable token to use as a new currency. Tokens that are developed with Ethereum use a standard API that is compatible with all kinds of Ethereum blockchain wallets.
- Build virtual organizations: You may write a smart contract to develop a blockchain-based virtual organization. You may add more people to the virtual organization & enable voting rules. Your organization’s members can vote & the required vote numbers are achieved, and the smart contract automatically executes.
- Make a dApp: Ethereum helps to create fault-tolerant and secure decentralized applications that reduce intermediaries & provide transparency.
- Raise funds: Ethereum smart contracts can also be used for fundraising. With this blockchain, you have to write a smart contract. In case you can’t accomplish the goal, automatically all donations must be reimbursed to donors without commissions or disputes.
How Ethereum Helps to Execute Smart Contracts?
Before discussing how to create a smart contract on the Ethereum platform, you need to understand the Ethereum blockchain and how it runs smart contracts. Let’s take a look at the execution environment.
Ethereum Virtual Machine or EVM:
The objective of EVM is to work as a runtime environment for smart contracts developed on the Ethereum platform. You can consider it as a supercomputer executing all smart contracts.
As the name suggests, EVM isn’t a physical machine. It’s a virtual machine and its functionality is restricted to virtual machines. For instance, it can’t develop delayed calls on the internet and produce random numbers. Therefore, it’s considered a basic state machine. Writing a program in assembly language never made any sense, so Ethereum needed a programming language for the Ethereum Virtual Machine.
GAS
In the EVM, GAS is a measurement unit that is used to assign fees to every transaction with smart contracts. Every computation in the Ethereum Virtual Machine needs some GAS.
Transaction fee = Total gas used x gas price
Solidity
Solidity is a programming language (smart contract) on the Ethereum blockchain. This is very similar to an object-oriented language that uses methods and class. You can use Solidity to perform arbitrary computations. It’s used to receive and send tokens & store states. Solidity is highly influenced by Javascript, C++, and Python so that developers can quickly understand its syntax.
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Final Words
Smart contracts are crucial for the economy as they deliver essential automation for the decentralized blockchain platforms. Integrating the Ethereum smart contract with a business operation can save expenses & effort potentially while making trustworthy transactions.
Understanding the above-mentioned steps involved in how to code Ethereum contracts will make it simple for your organization to design a way to implement new business ideas & objectives to take benefits of blockchain. For more info, talk to our experts at Sphinx Solutions today.
Read more related to blogs:
If you’re new to all this cryptocurrency stuff, including smart contracts, ICOs, and TGEs (token generation events), check out our Guide to Blockchain Development to dip your toe in the water. If you find yourself wanting to learn more, look at the Ethereum Whitepaper.
If you already know what Ethereum and smart contracts are, but still have some points to clarify, then read on.
How does one make smart contracts and avoid mistakes? VironIT has experience in writing, testing, and deploying Ethereum smart contracts and its web interface. Over time we have collected questions and answers about smart contract development, so let’s dive right in!
I need pre-ICO and ICO. Should I have 1 or 2 contracts?
If the period between pre-ICO and ICO is short, it is more convenient to create a single smart contract for both pre-ICO and ICO.
If it takes more than a few months, then chances are everything will change considerably, to the point where you will have to create a new smart contract for the ICO phase.
Then the security issue must be considered. Two simple contracts are likely to be more robust than a large and complex one.
For example, project Hackspace Capital raised 18 000 ETH in September using one smart contract, and it worked perfectly for them (here is a video of an Ethereum Wallet our company recently finished for them).
Ethereum’s smart contracts are not easy to develop and are even more difficult to run and test, and the cost of failure is high.
Hackspace Capital is a platform established for investing in and developing early-stage technology hardware. It connects hardware startups identified by its strategic partner
How to update a deployed smart contract
Please note, Ethereum contracts are immutable. Once deployed to the blockchain, they cannot be updated. The only way to change the code is by destroying it altogether by the SELFDESTRUCT opcode (selfdestruct) (in solidity) and deploy everything again. Imagine how painful this could be having hundreds of backers already. You would have to mint all the tokens again, which may have a devastating impact on your online reputation and the whole ICO’s success.
How to write upgradable contracts in Solidity
To write an upgradable smart contract, you have to connect third-party libraries. However, using such contracts compromises security. This can be seen in the case with Parity, when about $150 million was locked in smart contracts delivered before 20 June 2017.
Some valuable functions to include in your Smart Contract
pause/unpause – to put on hold or resume token operations
setRate – to change token cost
mint – to charge tokens to the right address manually (for example, if you receive payment via bank transfer or in some other way)
changeOwner – to replace a contract holder
changeWallet – to replace an active wallet to receive tokens from a fallback function
How much can I raise? What are HardCap and SoftCap limits?
ICO is a limited time fundraising campaign. There are several variables that describe limits and time frames; these terms are hard cap, soft cap, and total supply.
Soft Cap is the minimum amount of funds required for the ICO to be considered successful.
Hard Cap is the maximum amount of funds raised. For example, if terms haven’t yet been reached, but the hard cap is already assembled, the company stops fundraising and project development starts.
Total supply is the total number of coins or tokens that are in existence, including those circulating in the public market and those that are locked or reserved.
Please consider the following points:
- What will happen with the unsold tokens at the stages of pre-ICO and ICO?
- What will happen if the soft cap is not achieved? How will they be refunded?
- Is it possible to issue additional tokens and, if so, on what conditions?
Should I limit token transfer?
Yes, you should. Please consider the following points:
- What is the amount of issued and mined tokens?
- Is there a limit on the release, as determined by the initial price of the tokens?
Be aware that a big player can derail the rate of your tokens on the stock exchange, buy them for next to nothing, and then resell them when the rate rebounds, so, it’s necessary to restrict the transfer of tokens in the pre-ICO / ICO and after the ICO period. But this will not resolve all the problems if you don’t make a right KYC, the process in which a business identifies and verifies the identity of its clients.
Token distribution
You should come up with a clear plan for the distribution of tokens, such as:
- 20% reserved for founders
- 15% for the purchase of data from data providers
- 60% goes on sale
- 2% for the Advisory Board
- 3% for the Bounty Program
Consider whether the distribution should be automatic or manual.
How to determine the start and end dates of pre-ICO/ICO
We advise you to avoid a fixed date for the start/finish in the smart contract. *hit happens and schedules shift.
That is why it is better to have manual control over the start and end of these events:
- Start pre-ICO / Stop pre-ICO
- Start ICO / Stop ICO
What’s the difference between utility and security tokens?
There are two types of tokens, utility tokens and security tokens.
Utility tokens drive the entire system. They allow one to develop features for the distributed ledger, access, and interaction with the system. They offer a vote in a meaningful way for free information and the possibility of exchanging opinions among token holders.
Security tokens represent a monetary investment in a startup, a share of profits, losses, assets, or liabilities. They offer status as an equity holder, creditor, or lender. Security tokens involve an expectation of profits consisting of dividends, periodic payments, and investment value. Profits are to be derived from the entrepreneurial or managerial efforts of others. Voting rights of the token holders don’t offer meaningful control over the startup.
For example, ICO Head Start uses utility token with a buyback program.
To summarize
Before working on contracts, you should consider their structure and regulation.
During contract development, you need to remember not only the typical techniques and programming issues, but also about the specifics of the blockchain. A thorough automated testing, auditing of contracts, as well as their code verification are all helpful and necessary to prevent errors from creeping into the contracts. Finish the development stage no later than 7 days before launch to give yourself enough time to ensure the code is faultless.
Whether you are a start-up or business seeking the help of an expert ICO advisor, VironIT will provide you with the means you need to take advantage of the crypto market.
Let us know if this article helped you or if you have any doubts. Please leave comments below if you have any questions.
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Our tech experts help you unlock the untapped and unimagined potential of smart contracts solutions for your business.
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