Ethereum
Ethereum was the first smart contract platform and still ranks number one among many developers today.
Solana
Solana was created by a group of engineers from Intel, Qualcomm and Dropbox in 2017.
Algorand
Although Algorand remains a small part of Ethereum’s size, it hosts a number of DeFi projects, and has gained some momentum with central bank cryptocurrencies.
Avalanche
Avalanche claims to be the fastest smart contract platform in terms of ending and processing and finalizing transactions faster than any other platform.
Summary: Blockchain-based smart contracts are the technology that powers crypto. Our thesis is that these are among the most promising long-term investments, as the industry will integrate into 2 or 3 smart contracting platforms over time (buying them now might be like buying Microsoft or Apple in the early days). Here are our top 7 investment opportunities, rated and reviewed.
What are smart contracts?
Smart contracts only Agreements: Like a traditional paper contract, but using software instead. “Signed” between two or more parties, these contracts are executed once the predetermined conditions are met, for example:
- After someone sends you money
- When a certain date passes
- When something specific happens (price is met, an event is specified, all parties sign, etc.)
Usually, smart contracts are used to automate the implementation of the agreement so that the parties can get instant confirmation of the outcome. Smart contracts can also automate workflows, triggering action once certain conditions are met.
Smart contracts follow “if/when…then…” statements, written in code on the blockchain. Once predefined conditions are met and verified, a network of computers performs the necessary actions. These actions can include disbursing funds to appropriate parties, sending notices, registering a vehicle, or issuing a ticket.
Once the transaction is completed, the blockchain is updated. After that, the deal cannot be changed. Like a paper contract, it’s binding.
What are smart contract platforms?
a smart contract platform It refers to the blockchain platform that hosts smart contracts. Since these are the “operating systems” that power the world of Crypto, DeFi, and Web3, we believe smart contract platforms are among the most valuable investments today.
Our thesis That the industry will eventually merge into only 2 or 3 major smart contract platforms: Just as the PC industry merged into macOS and Windows, the smartphone industry into iPhone, Android, etc.
To find these top winners, we evaluated and reviewed the best smart contract platforms available today.
| Market value | Turing complete? | compatibility mechanism | Transactions per second (TPS) | Total Locked Value (TVL) | BMJ evaluation | |
| Ethereum (ETH) | $137.71 billion | yes | Proof of Work (But Moving on to Proof of Stake) | 30 | $46.98 billion | 5.0 |
| Solana | $12 billion | yes | Hybrid: Proof of History and Proof of Stake | 50000 | 2.51 billion dollars | 4.5 |
| Algorand Airport (ALGO) | $2.13 billion | number | proof of stake | 1,000 | $187.36 million | 4.5 |
| Avalanche (Afax) | $5.06 billion | number | proof of stake | 4500 | $2.67 billion | 4.0 |
| Binance Smart Series (BNB) | $37.53 billion | yes | Proof of restricted power | 20-30 | 6.18 billion dollars | 4.0 |
| Cardano (ADA) | $15.23 billion | number | proof of stake | 250 | $117.38 Million | 4.0 |
| Cosmos (Atom) | $2.61 billion | number | proof of stake | 10000 | 248 thousand dollars | 4.0 |
Ethereum
Investment symbol: ETH
Ethereum was the first smart contract platform and still ranks number one among many developers today. It has a huge network of users and is known for being incredibly reliable. Although it is a bit slow and expensive due to its popularity, there are many “Layer 2” chains that are speeding things up, even as Ethereum transitions to Proof of Stake. We give it a score of 5.0 due to its reliability and the fact that it’s an 800lb gorilla in the room. (BMJ Rating: 5.0)
Solana
Investment symbol: SOL
Solana was created by a group of engineers from Intel, Qualcomm, and Dropbox in 2017. Its main focus is on scalability, and it has already achieved a record 65,000 transactions per second. Due to scalability, we gave Solana a score of 4.5. (BMJ Rating: 4.5)
Algorand
Investment Code: ALGO
Although Algorand remains a small part of Ethereum’s size, it hosts a number of DeFi projects, and has gained some momentum with central bank cryptocurrencies. It features some technological improvements that give it high marks for productivity and environmental friendliness, so we give Algorand a score of 4.5 for its scalability, speed and low cost. (BMJ Rating: 4.5 )
Avalanche
Investment symbol: AVAX
Avalanche claims to be the fastest smart contract platform in terms of end-to-end i.e. processing and finalizing transactions faster than any other platform. It uses three chains of blocks to achieve fast termination while keeping fees low and ensuring scalability, giving it a score of 4.0. (BMJ Rating: 4.0 )
BNB . chain
Investment symbol: BNB
Created by the largest crypto exchange Binance, BNB Chain supports smart contracts, and is EVM compliant. The platform uses a “Proof of Hostage Authority” consensus mechanism to reward dealers and process transactions. We give Binance a score of 4.0 due to its low fees and interoperability. However, it has few validators, which makes it more central. (BMJ Rating: 4.0 )
Cardano
Investment Code: ADA
While Cardano has received some criticism for not delivering everything he promised, he takes a slow and steady approach to development by testing and peer-reviewing everything before it comes out. While it only launched smart contracts in September 2021, it already has over 100 projects under development in its ecosystem. We gave Cardano a score of 4.0, the platform’s consensus mechanism allows anyone to contribute, and 70% of the total ADA is off, ensuring excellent network security. (BMJ Rating: 4.0 )
Cosmos
Investment Code: ATOM
Cosmos refers to itself as the “Internet of Blockchains”. Its primary focus is on interoperability, which means that it ensures that different clusters of blocks can talk to each other. Interoperability will become critical as people and organizations increasingly use different blockchain networks. For this reason, we give Cosmos a score of 4.0. (BMJ Rating: 4.0 )
Smart contract use cases
Trade Finance
Trade finance can benefit greatly from smart contracts, as these contracts can help with cross-border payments, international transportation of goods, and start-up trade payments.
Smart contracts can automate labor-intensive approval workflows and clear computations today. This automation will help reduce working hours and significantly reduce errors.
data management
Every company requires employees to keep records of their communications, transactions, and messages. Typically, employees store these records in the cloud, on company servers, or in paper form. However, when employees need to share information between different companies or departments, they either need to submit documents online or deliver them manually.
This can lead to a lot of rollbacks, which is where smart contracts come in, as they can simplify the process of data logging through automation.
supply chain management
Smart contracts can reduce the risk of tampering and missing items, as data transparency reduces fraud opportunities.
In addition, smart contracts can use sensory data to track the location of goods and record their information during delivery. Then, if an item is lost or stolen in transit, the smart contract can detect the location. Smart contracts can also automate payments and routine tasks, such as checking inventory and planning delivery schedule, saving time and resources.
Property
Smart contracts can help simplify property transfers. Several countries, such as Ghana, Russia and Sweden, have already launched pilot projects to register title deeds using smart contracts.
Mortgages
The use of smart contracts in the mortgage process will allow both parties to digitally agree to the sale of the property before the payment processing takes place. Once the payment processing is complete, the smart contract will automatically update to reflect the change of ownership and the details of the new property ownership.
Security
A guarantee is a legal agreement under which a neutral third party receives and disburses money or property on behalf of the principal parties. Smart contracts can help simplify the escrow process by making it automated and transparent.
For example, suppose a freelance writer accepts a job to write copy for a company’s website. Once a writer submits their work and the company verifies, a smart contract can safely automate payment without the need for a third party.
insurance
The insurance industry loses millions of dollars to fraudulent claims every year. In addition to supporting upstream insurance policies, smart contracts can aid in claims processing by checking for errors and setting payment amounts.
Health Care
Smart contracts can help the healthcare industry get rid of paper-based systems and insecure data servers. They can automate the storage and transmission of personal health records across departments and organizations in a secure and private manner so that only the individuals concerned can access the information.
vote
Fraudsters may sometimes find ways to manipulate voting records stored on computer systems. Smart contracts offer a simple and cost-effective solution to voter fraud, as they can verify the identity of voters and record votes.
Advantages of the smart contract platform
- automation: There is no need for third parties or intermediaries to confirm the agreement.
- to support: All data is stored on the blockchain, where each node maintains its own backup.
- protection: Smart contracts are immutable, so the data cannot be altered or altered in any way.
- interruption free: Once the smart contract is executed, it cannot be interrupted or stopped.
- untrustworthyWith smart contracts, you don’t need to trust third parties to make a transaction.
- Cost-effectiveRemoving third parties and intermediaries from the process helps make smart contracts more cost-effective.
- preciseBy eliminating manual registration, smart contracts can help individuals and organizations eliminate errors.
- fast: Once the parameters of the smart contract are set, it can be executed smoothly and quickly.
conclusion
Smart contract platforms are already powering the world of crypto, DeFi, NFTs, Web3 and more to come. Investing in these platforms now might be like investing in Microsoft in 1996. Our thesis is that the industry will coalesce into a handful of big winners – the key is picking those winners now, and retaining them for the long term.
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