In the 21st Century, where everyone is running after fame and money, no one with average knowledge of the financial market may be unaware of the term ‘Cryptocurrency.’ Interested people in this field should know that Ethereum has even gained superiority over Bitcoin. So to give you more clarity on this subject, we introduce this highly informative blog. What can you expect to learn here? By the end of your reading, you will have answers to questions like ‘How to write a smart contract on Ethereum?’ and ‘How to create a smart contract on Ethereum?’. Topics on Ethereum Blockchain and Blockchain technology are also covered in this blog.
What is Ethereum?
Ethereum could be defined as a decentralized blockchain platform that performs several complex steps to produce and store tokens in respective wallets. The tokens are often used as a cryptocurrency.
- Vitalik Buterin first introduced Ethereum Blockchain in 2015.
- Ether is the currency generated by Ethereum.
- It forms a series of blockchains of decentralized applications (DAPP).
- The smooth execution of the smart contracts makes Ethereum comparable to Bitcoin, even better than it.
- Ethereum helps create DAOs (or Decentralized Autonomous Organizations).
How does this platform execute smart contracts?
Blockchain technology helps developers to run their customized blockchain contracts. Ethereum Blockchain is one such platform that executes smart contracts. This is how they do it-
1. Creating unique cryptocurrencies
The tradable token created in this platform could be used as a currency. These tokens could be used in other Ethereum wallets.
2. Create organizations
Writing smart contracts will help build virtual organizations. After reaching a certain number of votes from the organization, your smart contract will automatically go live.
3. Build Apps
This platform allows you to build dApps (decentralized Apps).
4. Raising funds
This is a great platform to raise funds by returning all donations in case you fail to meet the deadline of the contract.
What do you mean by smart contract?
A smart contract can be referred to as a program that generates a protocol for the process of transaction to take place properly. A smart contract ensures that there is no breaking of the terms and conditions and automatic execution of the transaction. The following are the features of a Smart Contract:
- Smart contracts reduce your dependency on the intermediate investors
- Reduces chances of fraud and is cost-effective
- They act as multiple bars of codes that remain embedded in the blockchain platform.
- There is a lower risk of malicious extensions that could lead to technical errors.
- Smart contracts act as the official building codes in the decentralized financial market.
What do you mean by Solidity?
Solidity is a specific programming language. For instance, Solidity is used on the Ethereum Blockchain platform to type a smart contract. With the help of Solidity, business strategy is generated through the creation of smart contracts, which ultimately leads to token generation. Solidity is prepared on the Ethereum Virtual Machine and has the following features-
- Shows a programming style that is object-oriented. For example, the use of factors like methods and class.
- It can execute certain arbitrary calculations.
- This language programming technology can receive and send tokens.
How can you create a smart contract on Ethereum?
This portion will give you a detailed answer to the question, ‘How to create a smart contract on Ethereum?’. Give below are the steps of creating a Smart Contract:
Step 1: Creating a Wallet
- Install MetaMask, which is the famous cryptocurrency wallet for Ethereum Blockchain.
- After installation, click on the main page’s top-right icon, which will open a new tab.
- Create a Wallet and a password. This will send a secret backup link that would help restore the original data.
- Please ensure that you have checked the box that ensures the usage of the main Ethereum network.
Step 2: Selection of a Test Network
- Test Networks like the Goerli Test Network, Kovan Test Network, or Rinkeby Test Network may be used.
- The Ethers of the above-mentioned test networks do not have real Ethers of the Ethereum Blockchain wallet.
Step 3: Dummy Ethers in the wallet
- After you create a smart contract using solidity, you have to add a few dummy Ethers to your wallet.
- For instance, if you’re using the Kovan Test Network and wish to test the contract, you will initially find 0 ETH in your wallet.
- Go to Test Faucet, and after clicking the Deposit button, click on the Get Ether tab. Then you request to add, for example, 1 ETH from the faucet to your wallet.
Step 4: Using Editor Remix browser
- After the dummy currency has entered your wallet, you can move ahead with smart contracts.
- On the Remix page, write your unique Smart Contract with the help of Solidity programming technology.
Step 5: Creating the File
- In this step, you will have to create a file with a .sol extension.
Step 6: Compiling the Solidity
- With any working version of the Remix Browser’s compiler, you can compile the Ethereum Smart Blockchain contracts key.
Step 7: Deploying the Contract
- Click on the deploy button present on the right side of the browser.
- After completing the transaction, you will be able to view the tokens in the wallet of another user, who previously deployed the contract.
- Once you’ve added those tokens, you can view them in your wallet.
How can you deploy Smart Ethereum Contracts?
After creating the Ethereum Blockchain wallet, and writing smart contracts, the following steps are to be followed:
- Go to the main page of the Ethereum Blockchain network.
- After adding some Ethers, follow the above steps till deploying your contact.
- In this step, go to the website, https://www.etherscan.io, and type your unique smart contract code address.
- Now, after getting the contract, it is time to verify your contract.
- Paste the contract code in Etherscan, using the compiler version that you used originally to compile the code.
- Optimize and verify.
- After a few minutes, your smart contract will go live.
- Now you can start running your Smart Contract codes.
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1. What is an Ethereum account?
Ethereum accounts are of two types; the Contract Account and the EOA (Externally Owned Accounts). An EOA comes with a private key, and transactions are made in this account. The contract account sends a code once the EOA’s transactions are transferred here.
2. What is the meaning of a Gas Fee?
The gas Fee is the total amount paid by the users as compensation for the total energy needed for the transactions to validate. With an increase in the number of Ethereum miners, there will be a decrease in the gas fee amount.
3. What is the meaning of Hard Fork in Ethereum?
In Ethereum, Hard Fork refers to the change observed in the protocol. The hard fork is required constantly to renew the rules and to make blockchain technology more compatible.