According on the Cardano blockchain, Cardano’s brand new Alonzo Hard Fork gained traction from the moment it was released in the mainnet. This Alonzo update was launched and made available to the mainnet on 13th September, 2021. Smart contracts can be designed and deployed on the mainnet as consequence of this change.
Alonzo gives Cardano equipped with the smart contract feature. It also improves its capabilities by incorporating it with Plutus scripts that are written using a basic functional language, such as Solidity and Haskell and by allowing users to add the scripts.
With this beneficial upgrade to smart contracts available on Cardano We must be aware about the development of smart contracts using Cardano. Cardano platform. In the beginning we must understand the fundamental concept of smart contracts.
What are Smart Contracts?
Smart contracts have been pre-programmed electronic agreements that are automatically generated. They’re self-executing and cannot be modified. They don’t permit any involvement of a middleman, or the presence of third party.
We can classify smart contracts into two types:
In one instance in which you need to add the value concept of one actor (or group of players) in another player (or an entire number of actors). The representation must be of the value concept, along with the rules and conditions that apply to it, and an event that activates it. This is known as a financial contract and is best done by using a domain-specific language.
In another scenario, you’ll need to design a program or application. The application is composed of a triangle
- The client program is running on the computer.
- The server is the one that runs on a server owned by someone else (or many servers).
- Smart contracts are the piece of the code that allows decentralized operations to be conducted.
What programming languages do Cardano utilize to develop smart contracts?
Three languages are specifically designed to develop smart contracts on Cardano as described below:
Marlowe
Marlowe is a specific domain programming language (DSL) which allows users to build blockchain applications that are specifically designed for financial transactions. When compared to a Turing complete language that is, the Marlowe DSL can be described as:
- Better Security
- Assured Certainty
- Guarantee of Termination
- More reliable guarantee of accuracy of the behaviour
The following characteristics are made certain by the style of Marlowe:
- Contracts are of a specific time period, and there is no looping, recursion or looping
- Contracts will reach an end and every action is subject to an expiration date
- Contracts must be of a certain period of time for when they become in effect
- When the closing occurs there are no assets to be kept
- Preserving value
Plutus
Plutus can be described as the Cardano Blockchain’s Smart Contract platform. It allows the development of applications that connect to the Cardano blockchain. Plutus lets all programming be executed in Haskell by using one library. It allows the creation of safe applications, as well as new asset acquisition and the creation of smart contracts with the best stable secure, reliable environment. Furthermore, developers aren’t obliged to run their projects on a full Cardano node. You can accomplish these things using Plutus:
- Create new tokens in a small environment
- Construct smart contracts
- Support for scripts with simple signatures
Haskell
Haskell is the primary language of Plutus. This is the programming language that is used by Cardano for intelligent contract development. Haskell is also used to regulate Marlowe as a domain-specific programming language used to create the financial smart contracts of Cardano. Even though it has a low rank on Google, Haskell is the first option for Cardano for developing the programming language. Why does Cardano do so?
Let’s discover the philosophy behind Cardano that lies behind the decision to choose Haskell initially. The premise behind it is Haskell is able and has the capability to write code that are strong. Haskell was named after the name of an iconic American mathematician who was referred to in the field of mathematics as Haskell Curry. Curry was a pioneer in the area that dealt with functional programming, like for example, Miranda. His fascination with functional programming languages was the basis for the creation of Haskell in the year 1990.
Haskell is a functional programming language which effectively creates high-assurance code that require a certain level of verification of a formal nature. Because Haskell has a high level of assurance, it assists the Cardano developers make sure that the code they implement is reliable and accurate.
What is it that makes the Cardano blockchain different against other blockchains?
Cardano has been designed in order to become scalable, long-lasting and compatible with other systems and blockchains. architectures.
As compared to other blockchain-related protocols, Cardano is distinct in many ways. For instance, Cardano protocol development is built on peer-reviewed research. high-assurance codes are used at the most advanced levels of engineering while the program is created with Haskell as functional language.
Cardano smart contracts should be created in Plutus and IELE. which is designed to offer a greater degree of security. Plutus is an intelligent contract language written with Haskell. Haskell is well-known by developers and academics for its blend of professional and academic knowledge with basic computer science skills and programming. So, creating smart contracts using the Cardano platform is more secure and reliable than writing smart contracts using any other smart contracting language. Plutus Platform is based on the Haskell framework, which will function as a toolkit that is accessible to developers to create smart contracts. It also allows both on-chain and off-chain codes. The smart contract code used by Cardano is tested, safe, and documented through peer review and high-assurance. Additionally, this research-first method that is carried out by a properly certified team of academics and cryptography experts differentiates Cardano as well as Cardano smart contract from counterparts.
Cardano’s strength in the future lies in its ability to function as a legally binding and reliable entity that can transfer shareholder assets. The stakeholder assets of the shareholders are required for contracting parties to be able to participate. The assets of the contract are transferred in accordance with an agreement on by the parties and integrated to the agreement. But, the money that are pledged to an intelligent contract will never ever be “frozen” indefinitely. The authors can set an expiration date to ensure the money is paid back after the specified time.
A smart contract that is created and programmed with Plutus and based on the Cardano blockchain offers complete visibility to all parties participating within the agreement. If it is designed correctly an individual hostile actor is unable to engage.
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