June 19, 2021

How to Create a Smart Contract on Cardano

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Cardano is a research-driven cryptocurrency that had evolved out of scientific philosophy. It is sustainable, secure and scalable, and supported by the blockchain that improves the overall functionality of the coin. 

Creating a smart contract on Cardano is the talk in the digital world and this blog highly focuses on providing you valuable information about how to create a smart contract on Cardano. 

Before getting into the concepts, let us get clear of the concepts - Smart contracts, their significance, and then how to move on to creating an effective smart contract on Cardano.

What are Smart Contracts?

Smart contracts are digital contracts that had made the process of building a contract efficient and easy. Compared to the traditional contracts that lie in the paper, it is completely digital, scalable, and easier to get approved by both parties within a short period of time making the business conduction highly efficient. 

Smart contracts ensure that the two parties make a legitimate agreement thereby proceeding with the digital guarantee. Many digital businesses like asset tokenization and the formation of ICO, IEO, and STO are created with the help of smart contracts.

The concept of smart contracts evolved in the Ethereum blockchain where some of the token standards, especially the ERC20 come with the specialization of smart contract functionality. Later several token standards of different blockchains including Tron, Cardano, etc. came up with smart contracts. 

Let us speak about the significance of the Cardano smart contracts

Significance of Cardano Smart contracts

Cardano smart contracts are significant in their function because they are highly scalable. They are known for their inter-operable functionality that you cannot find in any other smart contract blockchain.

There is no need for an agreement in terms of the Cardano smart contract blockchain. It is because they ensure a software ensured digital guarantee that no one can undermine or defame the contract through bad actions. 

They are not dependent on the action of individuals or government or any other bodies to execute the smart contract. It is because they are self-coded smart contracts that help the contract dealers to transfer the funds among them in a legal and efficient way. 

The smart contract blockchain in Cardano provides a high level of security and encryption that it is difficult to break in or hack the system. Each and every translation in the smart contract will be stored, distributed, and ledgered in the Cardano blockchain. You will need a private key to access your information.

Do you know what are the unique factors of the Cardano smart contract?

They are Protocol development, High assurance code by using Plutus or IELE and using Haskell as a functional language.

Now, let us know about it briefly that helps to know how to create Cardano smart contract

Creating Smart Contract on Cardano

Use of Plutus background 

The Cardano smart contracts are written with the Plutus or IELE background to support a high level of assurance for the smart contract. It is nothing but a Haskel-based smart contract program that supports the on-chain and the off-chain one. The on-chain is an ecosystem tooling software whereas the off-chain is a custom-made smart contract language that functions effectively on the Plutus core.

Plutus playground is a moderate browser-based developing environment that allows the developers to write and modify their dapp or defi smart contract for the Cardano program with respect to the mainnet environment. Smart contract capabilities on the plutus playground had been released recently by the Cardano IOHK team allowing them to come up with the smart contract accessible for all decentralized applications. But there is an allegation that it cannot run efficiently on the Mary Mainnet. 

Ethereum Virtual Machine and the K-framework

The Cardano smart contract runs on the Ethereum Virtual Machine in which the first version of the smart contract is tested in the EVM. In the future, there are chances that the Cardano smart contract may run on its own virtual machine with updated features and security options.

You know what, the Cardano team had come forward with a temporary checking mechanism to work on the Cardano virtual machine through their testing of the Cardano smart contract on K-Framework.

KEVM is a version of Ethereum virtual machine that runs on the cross-compatibility mechanism on Cardano. Once the framework and the running mechanism are ready, they allow the Occam.fi’s smart contracts to run on the KEVM framework through a sidechain on Cardano through the KEVM.

The Marlowe DSL

Marlowe Domain Specific Language is a kind of programming language that creates an effective programming environment for Cardano. It is a unique version of the Plutus environment that allows you to run it easily without the need for developers and subject matter experts. 

Marlowe playground, similar to Plutus playground contains all the functionality but it has a unique visual programming language called the Blockly that helps to build the smart contract on Cardano more effectively. 

Once the Marlowe smart contracts are written, they would be sent to the simulator to check on how it reacts to the Cardano blockchain.  Once it is live, it can change the preface of the smart contracts that allow businesses to run their blockchain for their businesses and enterprises in a completely different way thereby strengthening the Occam.fi ecosystem.

Way Forward

IOHK, which is responsible for the findings and operation related to the smart contracts, are looking for other smart contract programming languages that can work effectively on the Cardano blockchain. Cardano Foundation is also looking for multiple programming language support to run the smart contract on the Cardano blockchain. They are also looking to erupt a fundraising event to generate capital for building an uninterrupted and effective Cardano ecosystem with the best-in-class Cardano smart contract. 

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