- Get link
- X
- Other Apps
The Unique Role of Smart Contracts in Ethereum One of Ethereum’s standout features is its ability to host diverse applications on its blockchain using smart contracts. However, these smart contracts, while powerful, sometimes complicate simple tasks. For instance, determining the amount of ETH deposited into a specific Ethereum address can be surprisingly complex. This is because you cannot understand the actions of a smart contract without executing it. Synchronizing Blockchain Internals and Externals Smart contracts operate exclusively within the blockchain's data, reading and writing information stored on-chain. This limitation does not prevent the creation of valuable applications, such as multi-signature wallets or tokens like ERC-20 and ERC-721, which rely solely on on-chain data. However, most practical applications also require interaction with off-chain systems. Take cryptocurrency exchanges, for example. Exchanges facilitate converting ETH into fiat currency or vice ver...