Blockchain technology is renowned for bringing many innovations to the world, and clear examples of this are smart contracts. Smart contracts are self-executing contracts with the terms of agreement already written into code, which is why they facilitate operations and work without the need for a third-party intermediary.
These smart contracts are present on various blockchains, but the ones that are pioneering and offer the most prosperous environment for creating smart contracts are Tron and Ethereum. Each of them has its own special features, which is why it is essential to know them both to make an informed decision.
Ethereum was launched in 2015, and it is the first blockchain platform that has introduced smart contracts into the landscape. Ethereum also has a native coin named Ether, which is the second-largest digital coin by market capitalization. Tron (TRX) was developed in 2017, but it has several features that make it compete with big players like Ethereum. To start, it is the fact that it enables a proper environment for developers and wants to create a decentralized infrastructure with new unique features like bandwidth points, which users can utilize to stake or purchase the native token of this platform, Tron (TRX). Tron has gained fair popularity lately. This popularity can have a direct impact on the Tron price, as it can increase demand, which in turn means that the value of TRX can also rise.
In this article, we will discover more about the smart contracts on Ethereum and the ones from Tron, to see whose features stand out the most. Keep reading to learn more.
Tron: blockchain architecture, and how it supports smart contracts
Tron has several key elements that make it suitable for developing smart contracts, and high throughput is one of them, which significantly speeds up the transaction process. Other great bonuses are that it comes with low transaction fees, which is why it is considered more over the other platforms with bigger fees. Tron Virtual Machine (TVM) is the platform that executes smart contracts on Tron. Tron has a three-layer architecture, where each layer has special roles. For instance, the core layer handles smart contracts, the application layer helps developers create their dApps, while the storage layer is in charge of blockchain-level storage.
Here are the main factors why the smart contracts on Tron are standing out from the rest:
Truly decentralized financial services
Smart contracts are used for different decentralized financial services, which play an essential part in Tron’s blockchain. The services that are working with the help of smart contracts include borrowing, lending, and yield farming.
Using tokenization for real-world asset
Other important elements on Tron that work with smart contracts are tokenizing real-world assets. So, on this platform, developers can convert their physical assets to tokens that exist in a virtual world on the blockchain. With the help of Tron, users can leverage efficient asset management, which also facilitates easy and seamless asset transfers.
Interoperability with the smart contracts from other platforms
All the applications that function with smart contracts on Tron are also interoperable, so that developers will find an easy solution if they want to move their dApps from other platforms to Tron. With this approach, Tron can actually increase its number of dApps and its reach.
Ethereum: blockchain architecture, and how it supports smart contracts
Ethereum is a platform that truly revolutionized blockchain technology, and it supports a wide range of decentralized applications, in addition to offering payments with Ether. The Ethereum Virtual Machine (EVM) is responsible for executing smart contracts. Other important information about Ethereum is that it was the first platform to support smart contracts. It has done this with many important elements, like the following ones.
Decentralized Apps (dApps)
Decentralized apps work with the help of smart contracts, and dApps are one of the most essential elements of Ethereum. Popular examples of dApps include borrowing and lending apps, which utilize smart contracts to enable users to lend and borrow when specific conditions are met.
Proof-of-Stake (PoS) consensus mechanism
Ethereum utilizes a Proof-of-Stake consensus mechanism, which is ideal for utilizing smart contracts. The main characteristics of PoS are that it uses less energy, has good security, and improved transaction speed. PoS also supports new tech advancements, while also being a friendly alternative to the world.
Layer 2 solutions
Compared to Tron, Ethereum doesn’t benefit from the same high throughput, which has led it to seek other solutions to address its shortcomings. The best solution for this was Layer 2 options, which work on top of the infrastructure of Ethereum. This solution helps the creation of smart contracts, as it lowers the gas fees on Ethereum and reduces the load on the main component of the Ethereum platform.
How can smart contracts be improved both on the Ethereum and Tron blockchains?
Smart contracts are truly amazing assets of blockchain technology, and they help us in numerous areas in our lives, such as handling ownership or money. The top platforms when developers need the use of these smart contracts are Tron and Ethereum. However, even though they are the titans, they still can improve and take things even further with new, improved solutions.
In the case of Ethereum, this platform can improve the creation of smart contracts by becoming a more scalable network. Ethereum has found the best solution for this, represented by Layer-2 solutions, which remove some of the data from the Ethereum mainnet, and in this way, it can make the experience of users much faster.
Tron also has some good ways in which it can improve, with the final goals of becoming lighter and faster. In this way, it can enhance the user experience and pave the way for instant payments. If it achieves this, more dApps can migrate to Tron to take advantage of its qualities like low fees and increased speed.
Conclusion
Smart contracts are innovative features of the blockchain, and they bring many advantages, as they remove the need for intermediaries. There are many vital reasons why smart contracts are important. For example, they lead to faster transactions, as they don’t involve any middlemen, which also cuts costs. They also lead the way to transparency, as the conditions written into the code are available to all people to read.
