Top 5 Smart Contract Platform Coins 2024 by Market Cap

Bitcoin’s creator, Satoshi Nakamoto, designed it solely as a payment system. While Bitcoin brought blockchain into the limelight and showed the world the power of decentralization, it used blockchain only in a limited way. Then came Ethereum, a general-purpose distributed computing platform that supports smart contracts.

Smart contracts showcased the utility of blockchain technology, paving the way for decentralized applications (dApps). This article will discuss the best smart contract platforms and their coins. Let’s begin.

What are Smart Contracts?

Smart contracts are computer programs that run on the blockchain. They are designed to execute independently when certain predefined conditions are met. So, they’re usually written as “if x occurs, then y executes.”

Let’s take a look at an example. Imagine you want to buy a house from someone. In the old days, this process would involve lots of paperwork, lawyers, and time to ensure everything was done correctly and fairly. Now, enter the smart contract.

A smart contract automates buying a house by embedding the sale’s terms into code on the blockchain. You move your payment for the house into the smart contract (don’t worry; it’s safe). Then, the intelligent contract verifies that you’ve paid the correct amount, the seller has the right to sell the house, and any other conditions you both agreed on.

Once it has verified all the conditions laid out in its code, it executes automatically, transferring the ownership of the house to you and the money to the seller. As you can imagine, this eliminates the need for traditional paperwork or intermediaries, ensuring a secure and efficient transaction.

What are Smart Contract Platform Coins?

Bright contrast platform coins are the native cryptocurrencies of blockchain platforms that support smart contracts. Examples include ETH and ADA, the native coins of the Ethereum and Cardano blockchains, respectively.

Unlike other cryptocurrencies like Bitcoin, which mainly serve as a medium of exchange, these coins also provide the computational resources needed for executing smart contracts. They also serve as currency for paying “gas fees” for transactions on the network.

The Best Smart Contract Platform Coins

Let’s look at the best smart contract platforms and their native coins.

1. Ethereum (ETH)

Overview

Ethereum is the blockchain that introduced the world to smart contracts. It was proposed by Vitalik Buterin in 2013 and has been live since 2015. It’s known for its stable, decentralized, and highly secure ecosystem, versatility, and vast developer community.

Due to these attributes, Ethereum is the go-to blockchain for institutions. In fact, out of all the blockchains, Ethereum generates the most revenue in gas fees.

Key Features

• Ethereum is a proof-of-stake (PoS) blockchain that allows investors to stake their ETH holdings to help the network run smoothly. As an incentive, they earn a bit of ETH as interest.
• Hosts thousands of dApps across decentralized finance (DeFi), gaming, and NFTs.

Market Outlook

Despite market volatility, ETH remains a top cryptocurrency by market cap and is a solid choice for HODLing.

2. Cardano (ADA)

Overview

Cardano is recognized for its scientific approach to blockchain development. It has recently undergone significant advancements, cementing its status in the crypto ecosystem. One of its recent updates has enabled developers to build dApps more efficiently, fostering innovation within the Cardano ecosystem.

Key Features

• Ouroboros consensus mechanism, a Proof-of-Stake (PoS) system that is the first to be peer-reviewed and independently security audited.
• The hard fork combinator is designed to enable smooth, hard fork updates without system stoppages or fundamental chain restarts.
• Plutus and Marlowe programming languages: Plutus is optimized for smart contracts, and Marlowe is designed for users who aren’t programmers.

Market Outlook

Cardano’s market outlook for 2024 and beyond is generally bullish, with many analysts predicting significant price increases. Some analysts are optimistic about ADA reaching double digits by the end of 2024, fueled by the upcoming Bitcoin halving and potential altcoin season. However, it’s important to remember that these are predictions, and the market is volatile.

3. Solana (SOL)

Overview

Solana is a blockchain designed to address scalability issues that have plagued other blockchains. It uses a unique Proof-of-History (PoH) system to verify the order of transactions, enabling it to process them significantly faster than competing blockchains. Solana is also a Proof-of-Stake (PoS) blockchain, where validators are chosen based on the amount of SOL they hold.

Key Features

• Faster transaction speeds and lower costs than many other blockchains.
• Proof-of-Stake consensus mechanism that uses SOL tokens.
• A proof-of-history (PoH) timing mechanism is used to verify the passage of time between transactions.
• Ability to scale as usage increases without relying on Layer-2 systems or sharding.

Market Outlook

Solana’s 2024 outlook is promising due to its increasing ecosystem growth, technological advancements, and positive price projections from analysts. With a significant uptick in developers and daily transactions and the upcoming launch of the Firedancer validator client, Solana is poised for further success in the blockchain space.

4. Polkadot (DOT)

Overview

Polkadot is a blockchain designed with a focus on security and scalability. It aims to create a more private and decentralized internet, often called Web 3.0. Polkadot achieves this by allowing multiple blockchains, known as parachains, to connect and work together securely. DOT is the native cryptocurrency of the Polkadot network and is used for staking and governance.

Key Features

• Unique architecture allows for multiple parallel blockchains (parachains) to interact with each other.
• A cross-chain transfer system supports a variety of data and asset types.
• Scalable network through parallel blockchain transactions.
• Quick and customizable blockchain creation using the Substrate framework.
• Automatic upgrades without forks, enhancing efficiency and adaptability.
• A security-focused ecosystem with transparent and democratic interactions.
• On-chain governance involving all stakeholders for decentralized decision-making.

Market Outlook

Polkadot’s 2024 outlook is bullish, with technical upgrades and ecosystem expansions boosting DOT’s demand. Predictions suggest a high of $22.50 and a low of $5.50 for 2024. Long-term expectations into 2030 remain positive, with potential highs reaching up to $85.

Sources:

• https://cryptonews.com/cryptocurrency/polkadot-price-prediction/
• https://beincrypto.com/learn/dot-price-prediction/
• https://www.techopedia.com/cryptocurrency/polkadot-price-prediction

5. Tezos (XTZ)

Overview

Tezos is a blockchain platform like Ethereum designed for the secure and scalable deployment of smart contracts. However, Tezos has a unique feature: on-chain governance. This means stakeholders can vote on upgrades and changes to the network directly through their holdings, making Tezos a more democratic and adaptable system.

The unique baking process involves validators (bakers) who are rewarded for their contributions. All XTZ coin holders are eligible to participate in governance by staking their coins.

Key Features

• On-chain governance mechanism
• Open-source functional programming languages for smart contracts
• Formal verification for smart contracts

Market Outlook

Tezos (XTZ) shows promise for growth, with 2024 price predictions ranging between $0.656 to $3.73, indicating a potentially volatile yet upward trend. Optimism extends into 2025 and 2030, forecasting highs of $7.116 and $25.589, respectively, driven by innovations and the platform’s evolving NFT and DeFi ecosystems. These predictions reflect confidence in Tezos’ technology and governance model.

Criteria for Evaluating Smart Contract Platforms

We considered several criteria when evaluating smart contract platforms, like scalability, security, decentralization, developer ecosystem, and real-world adoption. A good platform can

• handle many transactions at once quickly;
• ensures the security of smart contracts;
• operates in a decentralized manner;
• supports developers with tools and community, and
• has a track record of successful projects.

Challenges Facing Smart Contract Platforms

Here are some challenges that smart contract platforms have to deal with:

• Security vulnerabilities: Because they are essentially code, smart contracts are susceptible to bugs and exploits. Errors can lead to hacks and loss of funds.
• Scalability limitations:  Some platforms struggle to handle a high volume of transactions, leading to slow processing times and increased fees.
• Lack of legal clarity: The legal implications of smart contracts and how they are enforced in different jurisdictions are still evolving.
• Reliance on oracles:  Many smart contracts depend on external data feeds (oracles) that can introduce additional vulnerabilities and trust concerns.
• Immutability:  Smart contracts are typically immutable, meaning errors can’t be easily fixed after deployment.

The Future of Smart Contract Platforms

The future looks bright for smart contract platforms, with advancements in interoperability and Layer 2 solutions promising to solve current limitations. Regulatory clarity could further boost adoption, as could the continued growth of DeFi.

Conclusion

Bitcoin paved the way, but smart contracts are transforming the potential of blockchain. Platforms like Ethereum, Cardano, and Solana offer innovative solutions for finance, supply chains, and beyond. Their native coins power this revolution, making them intriguing investment opportunities.  If you’re ready to explore this space, Mudrex provides a secure platform to start your journey. While promising, remember that crypto investments carry risk. Conduct thorough research before making any decisions. Download the Mudrex app now and explore how seamless your Crypto investment journey can be.

Frequently Asked Questions (FAQs)

1. What are smart contracts?

Smart contracts are computer programs that run on the blockchain. They are designed to execute on their own when certain predefined conditions are met.

2. Which platform is best for smart contracts?

There is no best platform for smart contracts. Developers choose the platform based on their requirements. Having said that, Ethereum remains a popular choice among developers owing to its security and mature ecosystem.

3. Which crypto is best for smart contracts?

There’s no single “best” – it depends on your needs. Ethereum is the most established, Cardano focuses on security, and Solana excels in speed. Research each platform’s strengths and weaknesses to find the best fit for your project.

4. What is the most popular platform for smart contracts?

Ethereum is currently the most popular smart contract platform, boasting a large developer community and a wide range of dApps.

5. Which coin is a smart contract coin?

Native coins of smart contract platforms (like ETH, ADA, SOL) are considered smart contract coins. They power the execution of smart contracts on their respective blockchains.

6. What is the fastest crypto for smart contracts?

Solana is known for its exceptionally fast transaction speeds, making it a popular choice for applications that require quick processing of smart contracts.