A smart contract platform is a blockchain that provides a foundation for developing decentralized apps (Dapps). Dapps are executed when pre-set conditions are met and are essential to the operation and success of decentralized finance and other blockchain applications.
There are two important features that make a smart contract platform possible. First, compatibility with developer-friendly programming languages that allow you to develop custom smart contracts.
Second, a consensus mechanism is maintained by a network of nodes that regularly validate blocks to ensure transaction finality and overall network security.
The DACS glossary defines a smart contract platform as:
A smart contract is a computerized blockchain protocol that enforces the terms of the contract. A smart contract represents a computer node that automatically executes if both parties meet the contract's conditions. This enables trustless peer-to-peer trading.
Smart contract platform assets are made for the development of decentralized applications, layer 2 scaling solutions, decentralized autonomous organizations (DAO) and other custom protocols.
All platforms have their own open source user miner incentive schemes that leverage Byzantine fault tolerance.
Additionally, every platform leverages native tokens to pay for development on the platform. It provides liquidity and enables interoperability between native tokens and new tokens developed on the platform.
Byzantine Fault Tolerance: Byzantine General Problem (A group of objects that communicate with each other to form a collectively correct agreement where the communications and individual objects may, through failure or on purpose, convey false information. a system that behaves correctly as a whole even if the
Industry Group in the Smart Contract Platform Sector
Industry groups within the smart contract platform sector will depend on whether assets have interoperability with other chains. Two industry groups exist: single-chain and multi-chain/para chain.
The Single Chain Industry Group includes Layer 1 blockchains where every transaction is recorded on a central distributed ledger. Single-chains can leverage layer-2 scaling solutions that remain connected to the main blockchain to increase transactional capacity.
The multichain/para chain industry group includes multiple parallel blockchains and smart contract platform assets that enable cross-chain interoperability.
This can consist of a relay chain that allows slots for external parallel chains "parachains". Relaychains allow security and block execution to be pooled, with each parachain becoming an independent, independently verified blockchain capable of achieving its own level of scalability.
Within the smart contract platform sector, single chains are more developed, accounting for around 90.6% of the market capitalization. However, there are also 30 digital assets within the multichain/parachain industry group due to the growing demand for interoperability.
Industries within the Smart Contract Platform Sector
Within the smart agreement platform sector, each enterprise company presently consists of a single enterprise. As such, the industry composition of the sector is the same as the industry group composition. But as the sector grows, more industries may emerge.
Key assets within the smart contract platform sector
There are 80 digital assets within the smart contract platform sector, but Ether ( ETH ) accounts for more than half of the total sector and the top 10 assets account for 90.6% of the sector.
Among single chains, apart from Ether, the main assets are Cardano ( ADA ) and Solana (SOL), each with its own blockchain and Dapp ecosystem.
Polkadot ( DOT ), a layer 0 relay chain that acts as a hub for other parachains, and Avalanche (AVAX), the main network for a series of sub-networks, are the main assets involved in the multichain/parachain industry.
Conclusion
The smart contract platform sector tends to foster a rich environment for high-level development and resource-attracting innovation.
These platforms leverage network effects, decentralized consensus mechanisms, and compatibility with various programming languages, allowing creative and innovative developers to create decentralized exchanges (DEXs), lending platforms, and NFT marketplaces. It has become possible to develop protocols for a wide range of purposes, such as
Smart contract platforms serve as the foundation of the digital economy. Dapps built on these platforms attract millions of users, empower individuals to take greater ownership over their assets and transactions, and offer a wide range of opportunities for rapid growth. Creating a growing economy.
Furthermore, through network effects, it also facilitates positive reinforcement cycles. As more Dapps are developed on a wide range of smart contract platforms, new users will purchase and use native tokens to gain access to the network.
As such, platforms that act as a transaction-based payment layer for each protocol running on the blockchain will benefit from increased revenue and demand.
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