A smart contract is an essential feature in the blockchain world. Its ability to run automatically when certain conditions are met highlights the benefits of using one. This efficiency draws many users to explore and learn how smart contracts are developed in blockchain systems.
This article aims to provide a thorough understanding of smart contracts, from the basics of what a smart contract is, to more advanced topics like which currencies support them, how to create one, the expenses involved, and the development timeline.
Understanding the Basics of Smart Contracts
A smart contract is a digital agreement stored on the blockchain that operates automatically once specific conditions are fulfilled. It consists of code that enforces rules within the blockchain system. For example, when you transfer tokens to your friends, the smart contract will automatically process the transaction and issue a receipt.
As mentioned earlier, this automatic execution is what makes a smart contract special. It eradicates the necessity for a third party, meaning transactions become decentralized, transparent, and safe.
Blockchain Currencies That Run Smart Contracts
Smart contracts can’t operate just anywhere. They require specific blockchain networks that are built to support smart contract functions, networks that include automatic code processors, specialized virtual machines, and native currencies used to pay gas fees.
Read More: What are Smart Contracts in Blockchain?
Several well-known currencies meet these technical requirements to support smart contracts. These include Ethereum (ETH), Avalanche (AVAX), Fantom (FTM), and Harmony (ONE), which we’ll explore further below.
Ethereum (ETH)
Ethereum is the main inventor in the smart contract world, as it was the first to create and popularize the concept, eventually inspiring other currencies to follow suit. In fact, almost every modern dApp that exists on the blockchain first appeared on Ethereum.
Ethereum has its own currency called ETH, which is used to pay gas fees every time a smart contract is executed. Aside from that, it also has an active community that constantly supports smart contract development. However, due to its high popularity and heavy usage, the gas fees on Ethereum can be more expensive compared to other currencies.
Avalanche (AVAX)
Avalanche, with its native currency called AVAX, is another well-known blockchain that stands out for its speed and scalability. This network can process thousands of transactions per second, making it even faster than Ethereum.
AVAX not only supports smart contract operations but is also compatible with Ethereum. This allows developers to use the same programming language with minimal changes. Its gas fees are also more affordable, and transactions are completed faster, making it a strong alternative to Ethereum.
Fantom (FTM)
Fantom, often considered an alternative to Ethereum, is a blockchain network that focuses on speed and low-cost smart contract operations. It’s built using a unique technology called Directed Acyclic Graph (DAG), which ensures transactions are fast and don’t consume excessive funds.
While it may not be as widely known as Ethereum or Avalanche, many users prefer Fantom for its transaction efficiency. This makes it a smart option, especially for beginners who are just starting to explore the world of crypto.
Harmony (ONE)
Harmony is a packed blockchain network that allows the operation of smart contracts. It’s built using sharding technology, an advanced method designed to boost efficiency, improve security, and enhance the overall experience for users. With its native currency called ONE, users can enjoy fast transactions with minimal gas fees.
This network also supports compatibility with Ethereum’s programming language, allowing users to develop dApps without needing to learn or build an entirely new system from scratch. Harmony is a flexible and beginner-friendly option for running smart contracts.
How to Create Smart Contracts
As mentioned earlier in the introduction, this article will walk you through how to create smart contracts step-by-step, so you can understand the process clearly and avoid mistakes along the way.
However, this section won’t go into actual coding. The goal here is to prepare you with the foundational knowledge needed before jumping into smart contract development on your chosen blockchain network.
The Concept
The beginning of creating a smart contract is to define the picture and purpose. Start by asking yourself a reflective question: “What problem do I want this smart contract to solve?” Once you have a clear concept, you’ll have a better sense of what kind of code you’ll need to write later.
For instance, let’s say your goal is to build a fundraising system. You can design a smart contract that will automatically collect funds, stop accepting donations once the target is reached, and return any extra funds to the donors. With a solid plan like this, the next stages will be much easier to navigate.
The Coding
After brainstorming the concept, the next step is to choose the right programming language before diving into the actual coding. This step is crucial because not every language works on every blockchain network, and each network has its own preferences and technical requirements.
Blockchain developers generally depend on either Solidity or C++ to create smart contracts. Solidity is the most widely accepted and beginner-friendly option. With support for Ethereum, Avalanche, Fantom, and Harmony, it has become a widely used and flexible choice among developers.
On the other hand, C++ is usually used for smart contracts that aren’t built on Ethereum Virtual Machine (EVM), like EOS, or for larger-scale projects that require high-performance systems. While it’s more complex and technical than Solidity, C++ gives users greater control, more efficient memory management, and faster execution speeds.
Other programming languages such as Python, Java, and Motoko are also used, depending on the blockchain network you’re working with. It’s important to do a bit of research to make sure the language you choose is compatible with the blockchain network where your smart contract will run. Once you’re confident in your setup, you can start writing the code.
The Testing
After you’ve finished writing the code, the next step is testing. This step is extremely important because once a smart contract is deployed on the main network (Mainnet), it becomes permanent. If you later discover a mistake, you won’t be able to fix or update it, what’s done is done.
To avoid this, you can use a Testnet, which is a simulated blockchain network created specifically for testing smart contracts without using real money. It allows you to identify bugs and see how your contract performs in a safe environment. You can also use tools like Remix IDE, which has built-in testing features, or frameworks like Truffle that help simulate contract behavior before deployment. This testing phase ensures your contract is safe, functional, and ready for the real blockchain.
Compile the Contract
Before a smart contract can operate on the blockchain, you ought to compile it. This means converting your written code into bytecode, a format that can be read by machines. Compiling is a necessary step across all networks and programming languages, including Solidity for Ethereum. Even though Solidity is widely supported and commonly used, the initial code is still in raw form and unreadable by the blockchain without being compiled first.
Deploying the Contract
Once the code is collected into bytecode, the following action is deployed. This means sending your contract to a blockchain network so it can be activated and start functioning as intended.
To deploy a contract, you’ll need a digital wallet, MetaMask is a popular choice, and some funds in the form of ETH, AVAX, FTM, or ONE, depending on the network you’re using. These funds are needed to pay the gas fee. After a successful deployment, the contract will go live and operate automatically based on the logic you wrote in the code.
Monitor the Contract
Even after deployment, your job isn’t entirely done. It’s important to continue monitoring the smart contract to ensure everything runs as planned. This includes checking if each transaction is processed correctly and evaluating whether any updates or improvements are needed over time, such as storing new data or adjusting performance. Regular follow-up helps maintain the reliability and efficiency of your smart contract in the long run.
How Much Does A Smart Contract Cost?
Creating a smart contract can either be free or come at a price, it all depends on how much effort you’re willing to put in. If you choose to handle the coding and testing yourself, you can save money and build the contract for free. But of course, that also means investing time and energy to learn the coding, run the tests, and deal with trial and error on your own.
Read More: Top 10 Smart Contracts Coins to Consider in 2025
If you’d rather avoid the technical hassle, hiring a professional service is an option. The cost for a single smart contract typically ranges from $7,000 to $45,000, while more complex builds like those for hedge funds can reach around $100,000.
Since smart contracts can’t be altered once they’re deployed, many companies also hire audit services to ensure everything is secure and bug-free before launching. These services can cost anywhere from a few thousand dollars up to $15,000, depending on how complex the contract is.
Aside from development and audit fees, you’ll also need to budget for gas fees. Gas is required every time the smart contract runs, whether it’s sending money, calculating donations, or performing other transactions. If the gas fee is arranged overly low, the contract might fail to complete. Setting a higher gas fee is generally safer, and don’t worry, if the actual cost ends up lower, the leftover amount will be returned to you.
How Long Does It Take to Develop a Smart Contract?
If you’re completely new to the blockchain world and have never written a line of code before, it could take months, or even years just to learn enough to build a simple smart contract. But if you already have some coding experience or have been involved in the crypto space for a while, creating one might only take a few days to a couple of weeks.
Once you’re familiar with the coding process and understand how smart contracts work, you could even complete one in just a few hours or even minutes. Again, it all depends on how complex the contract is.
Conclusion
Smart contracts are powerful tools in the blockchain space, offering secure, automatic, and transparent transactions without third parties. However, building one takes planning, from choosing the right network and language to testing, deploying, and monitoring.
While the process may seem complex, it’s doable with enough time or the right help. Whether you code it yourself or hire a pro, understanding how smart contracts work is a solid step toward using blockchain tech effectively.
Disclaimer: The information provided by HeLa Labs in this article is intended for general informational purposes and does not reflect the company’s opinion. It is not intended as investment advice or recommendations. Readers are strongly advised to conduct their own thorough research and consult with a qualified financial advisor before making any financial decisions.
Hey, I’m Kamila. I used to write about lifestyle trends and culture, until tech caught my eye, and didn’t let go. What started with covering digital products turned into a deep dive into Web3. Now, I help make blockchain topics less intimidating and more human, one piece of content at a time.
