Aug 19, 2020
Today, most financial transactions are based on traditional contractual agreements composed of paperwork, that often need trusted third parties to validate the fulfillment of terms outlined in the agreement. This method is outdated, slow, and, most importantly, not cost-effective.
In blockchain, developers are using smart contracts to automatically execute transactions when conditions are met using basic lines of code stored on the blockchain.
However, developers using smart contracts built on first-generation blockchains are facing challenges that are preventing their applications from gaining mainstream adoption. These smart contracts are slow to propagate, costly, and do not scale for real-world use-cases. These impediments have to be removed for viable mainstream adoption - until they do, blockchain will remain a fringe use case.
Algorand’s smart contracts (ASC1s) remove these barriers as a trusted, seamless solution that is not only high performing by being faster, scalable, and cost-effective, but also functionally advanced to enable sophisticated application.
Algorand’s smart contracts are built directly into the layer-1 of a next-generation, open-source, permissionless blockchain that is decentralized and secure, providing significant benefits that include:
An essential tool for all blockchain developers, smart contracts have accelerated the adoption of blockchain technology and are contributing to the increasing momentum.
The benefits and use-cases of blockchain applications are too many, too big, and too important to be stalled by the shortcomings of the first generation blockchains. Algorand enables developers to overcome legacy blockchain limitations and take advantage of the network, without sacrificing the speed, cost-effectiveness, and simplicity that their applications require.