There is a reason why DeFi smart contracts technology is growing unchecked. The benefits far outweigh the risks. That’s why.
- Security
- Speed
- Transparency
- Efficient
- Developer Toolkit
Security
Smart contracts work in tandem with the blockchain network. The safety of blockchain technology extends over to smart contracts. For example, once a smart contract gets stored on a blockchain, it’s immutable. For hackers to tamper with it, they must compromise all the blocks in the blockchain. And this is on-chain security.
Speed
Smart contracts are virtual and automated, so there is no paperwork. And this also eliminates the time needed to fix mistakes or changes when documents get drafted manually. Furthermore, the lack of third-party mediators removes the time delays and fees that usually come with it.
Transparency
Blockchains are online virtual ledgers. Anyone can access these blockchains. Furthermore, all data on the blockchain is open at all times. Due to the openness of on-chain data, smart-contract transparency is innate.
Efficiency
The main reason smart contracts are used is due to their efficiency. The contract executes itself if the underlying conditions get satisfied. And this contributes to the time it saves.
Developer Toolkit
DeFi smart contracts run the DeFi protocols. As they function on blockchains, it is ideal for developers to build dApps. For example, Rotki and DeBank are dApps built around the Uniswap protocol.
We have seen enough of the smart contract benefits; let us see how to develop them.
click here for more info>> https://blog.cryptostars.is/defi-smart-contract-development-83df34b49e84
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