How To Use Smart Contracts In dApps

Have you ever wondered what if your applications could run autonomously without needing any central authority to govern them or a third party to facilitate any transactions? Sounds like some science fiction, right? However, this is the reality that Smart Contracts enable.

That is precisely what smart contracts make possible. Far from being a futuristic concept, they are the foundation of decentralized applications (dApps) that are already reshaping industries such as finance, gaming, and supply chain.

In this blog, we are going to cover what smart contracts are, their role in powering decentralized applications, and how to utilize them in your dApps.

Let’s start by first understanding what is dApps.

What are dApps?

A decentralized application (dApp) is a type of software that utilizes blockchain for its operation. It is a distributed network of storage solutions in a peer-to-peer connection, rather than a single centralized server. This feature signifies that there is no single person or entity to control the applications.

dApps use smart contracts for their operation, which makes their decentralization operations possible. Because they do not rely on any central authority, dApps offer a variety of advantages, some of which are:

• They offer zero downtime because the dApps can continue to run on other nodes in the event that one of the nodes fails.
• They provide a higher level of privacy along with more trustless and efficient methods of operation.
• Reduces the cost of functioning, as the need for intermediaries is eliminated.
• There is no risk of censorship, as it is not owned by any single person.

What are Smart Contracts

A smart contract is a self-executing set of terms and conditions that are directly embedded into the blockchain itself. When the predefined conditions are met, it triggers the smart contract to kick in, and the actions that are programmed in it are performed automatically, eliminating the need for intermediaries.

Smart contracts use immutable ledgers that further ensure trust and reliability for the users, and they can audit the code of the smart contract and verify transactions that are made on the blockchain.

How Do dApps Work with Smart Contracts?

dApps use smart contracts to automate their operations on the blockchain. Since smart contracts are self-executing bodies with terms directly written into the app code, this enables automation and transparency. 

When users interact with the dApp, their actions will trigger the conditions that are coded into the smart contract. For instance, in a financial dApp, the smart contract makes sure that money is moved in accordance with the guidelines established by the code.

Understanding how dApps work can help you launch your first dApps the right way. Generally speaking, smart contracts and dApps operate as follows:

User Interaction

Whenever a user initiates an action within the dApp, such as sending tokens, purchasing an NFT, or casting a vote, a transaction request is generated. This action is then converted into a transaction request that communicates with the smart contract.

Triggering Smart Contract Logic

The smart contract receives the request and has a predetermined set of rules written in its code. The contract will execute automatically if the terms are met, like “if the user has enough tokens, then the transfer goes through.”

Blockchain Validation

Instead of being managed by a single organization or authority, the blockchain network verifies the transaction. Miners or validators verify the transaction, ensuring appropriate adherence to regulations.

Execution and Recording

After validation, a vote is registered, an NFT’s ownership is changed, tokens are transferred, or the action is executed. At the same time, the result is transparent and impenetrable since it is permanently recorded on the blockchain.

Feedback to the User

Last but not least, the dApp’s front end modifies the user interface to reflect the outcome, such as displaying a successful transaction message, a new balance, or confirmation of an asset purchase.

The Advantages of Integrating dApps with Smart Contracts

Smart contracts come with a variety of advantages when we integrate them with dApps. Some of these are:

• Automation

Smart contracts help automate the entire process through their implementation of predefined actions without any manual intervention. This speeds up the operations and ensures a more reliable experience. 

• Transparency

Since smart contracts leverage the power of blockchain, their execution is both transparent and immutable; this means that all transactions are visible and cannot be altered, thereby enhancing protection against malicious activities.  

• Security

Smart contracts run on secure blockchain networks, which makes them secure and hard for anyone to change or steal from. This ensures that the logic and outcomes of dApp operations are safe from malicious attacks.

• Cost Reduction

Since smart contracts automate the processes in dApps, they eliminate the need for third-party intermediaries, which helps in cutting costs. dApps can operate more efficiently and more affordably, which benefits both developers and users.

• Reliability

When smart contracts’ conditions are met, they execute automatically, reducing the possibility of errors and delays. This improves the reliability of dApps because users can trust that operations will go as planned.

Languages Used in Programming for dApp Building

dApps leverage a variety of programming languages, and the choice of these depends on the type of blockchain used for the dApp and the components being used.

Below is a list of a few popular languages that are used for dApp building:

• Solidity

Solidity is the most widely accepted and popular programming language for building smart contracts. This is the default language for Ethereum-based blockchain networks, but is also compatible with other networks like Polygon, Binance Smart Chain, and Avalanche.

• Vyper

Vyper is a Python-based programming language that is particularly used for smart contracts developed on Ethereum networks. Its primary concern is simplicity and security, which makes it more suitable for high-end security applications.

• Rust

Rust is known for its performance and safety features; it’s used for smart contracts on platforms like Polkadot, Solana and Cosmos. It provides protection against typical programming mistakes.

• Go (Golang)

Go is used to build the core blockchain infrastructure and is widely appreciated for its efficiency and performance in the enterprise industry and blockchain environment. It’s used to write smart contracts for blockchains like Ethereum and Hyperledger Fabric.

• Cairo

Cairo is the native language for building smart contract on StarkNet; It’s designed to create zero-knowledge (ZK) proofs, which enable highly scalable and privacy-preserving smart contract applications.

It’s a Wrap

In this blog, we have seen the entire process of how dApps work with smart contracts and the advantages, like automation, transparency, security and more, that are enjoyed by dApps when they integrate smart contracts.

dApp developers are able to create more dependable, efficient, and trustless applications by integrating smart contracts, and they offer all these without relying on middlemen, which is a plus point as it significantly reduces the running cost.

Whether you’re developing financial dApps, gaming platforms, supply chain systems, or any other decentralized solution, including smart contracts in your dApp architecture opens up a whole world of possibilities.

We at Technoloader make it possible for you to tap these possibilities by leveraging our expertise and experience, helping clients like you to develop secure, fast and scalable dApps that are ready for the future.

Contact us today!

FAQ’s

1. Can dApps handle updates and modifications to smart contracts?

Upgrades and modifications to smart contracts are typically difficult for dApps to handle. Once deployed, smart contracts cannot have their code changed because they are immutable. Developers can create smart contracts that are upgradeable by using proxy patterns. 

2. Do dApps use smart contracts?

Yes, dApps are heavily reliant on smart contracts for their functioning and use them as their on-chain backend to handle business logic, allowing transactions and implementing rules.

3. How do dApps generate money?

One of the easiest and most prevalent ways for dApps to make money is through transaction fees. By charging users a small fee for each transaction or interaction within the application, dApps can generate a consistent revenue stream.

4. What’s the difference between dApps and web3?

A dApp is a kind of web3 program that stands for “decentralized application.”  All dApps are web3 apps, but not all web3 apps are dApps because some of them are not decentralized. 

5. How much does it usually cost to deploy a smart contract?

Smart contract deployment costs vary depending on factors such as development complexity, gas fees, and the blockchain platform of choice. For instance, it would cost about $2,000 to set up a simple smart contract, while a more complicated one might easily cost $20,000.