Algorand Is The Best Place To Run Smart Contract And Dapps.

The use-case of blockchain technology is not limited to finance. However, we can unlock limitless possibilities with blockchain through Smart-contract and Dapp. After Ethereum, there are blockchains created that are more advanced than Ethereum. The challenge is to choose the best platform to deploy and run your smart contract and decentralized applications. In this article, we will compare some of the best platform-based blockchains.  I will outline why the Algorand blockchain is the best place to deploy and run your smart contract and Dapps.

A platform-based blockchain is suitable for developers and end-users if it has advanced tools, enhanced SDKs, easy dev onboarding, cheap fees, speed, substantial support, and solves the blockchain trilemma. Let us discuss some popular platform-based blockchains like Ethereum, EOS, NEO, comparing with the Algorand blockchain.  


Ethereum:

Ethereum was the first project that introduced smart-contract and Dapps but Ethereum is not the best platform to use for smart-contract and Dapps due to the following issues experienced including high fees, low speed, difficulty to scale, blockchain overload, etc. {Reference-1, Reference-2}.   


According to a report in 2018, a simple smart-contract without complex logic can cost up to $7,000 and a complex smart-contract can cost up to $45,000 with an extra cost to deploy your smart contract on the mainnet. To find out more, you can read ‘Gas Costs from Yellow Paper’ or just look on the spreadsheet where all operations listed with the required gas price to execute, and according to analyst argues Ethereum 2.0 won’t fix the scalability issue of the Ethereum blockchain. {Reference-1, Reference-2, Reference-3}.

EOS:

Comparing EOS with Ethereum, the difference is no gas fee for the users but the creator assumes the costs. In order to provide the best service to users, the creator has to stake some EOS in the network. By staking EOS you will get resources (RAM, CPU, Bandwidth) to deploy or run your smart-contract and Dapps. The more resources you have ensures greater priority from the EOS network. 

EOS provides the resources to run your smart-contract and Dapps relative to your staking sizes. When the user base of your smart-contract and Dapp's increase, you have to increase your staking size according to your needs.

Smart-contract and Dapps run on the EOS network consume CPU, network bandwidth, and RAM. What does this mean?  


You need to buy RAM to deploy a smart-contract. A decent smart-contract requires 1MB of ram RAM.  You will need to stake 41.30188288EOS (The value can fluctuate). Furthermore, to run a Dapp with 1,000 users, you will need 4000kb RAM and be required to stake 161EOS.

When your users use your Dapp, they will need some storage to store all the data they create.  If you have 1,000 users and each user needs 1MB, then it becomes 1,000MB for 1,000 users, and staking of 41301EOS. 


Now come to CPU and bandwidth, where an estimation of 10 EOS is enough to cover one user and for 1000 users would require ~10000 EOS to stake {Reference-1, EOS resource planner, Reference-2}. 


The research found that EOS Network Can Freeze because many users of EOS are experiencing problems with network access, but Block.one denies any error {Reference}. 


NEO:

NEO blockchain claims that it is faster than Ethereum with good tooling support to develop and deploy Dapps or smart-contracts. You can develop on the NEO blockchain using the programming languages including C#, VB.Net, F#, Java, Kotlin, and Python. Users of the NEO blockchain encountered a glitch related to speed. Users experienced slowness during popular ICO's.  Developer issues related to getting smart contracts to work and high deployment costs have been experienced. NEO is more centralized than other blockchains because most of the nodes running are under NEO {Reference}.


To create and deploy a smart-contract on NEO blockchain, you need 100-1000 GAS, which costs approximately $134-$1,340 (it can fluctuate) depending on your requirement.  To create an asset on the NEO blockchain, you need to pay 5,000 GAS, costing you $6,700 in 2020. It is important to note and remember you need to renew it every year, costing 5,000 GAS per year.{Reference-1, Reference-2}.


Algorand:

As a platform-based blockchain, Algorand has innovative features for developers to create and run smart-contract or Dapps. It has enhanced SDKs that you can create and deploy applications on the Algorand blockchain, using languages such as Javascript, Java, Python, and Go. Algorand also has a community-powered Rust SDK and .NET SDKremoving the need to build from scratch. Algorand has many other Developer's tools including a good API, indexer, Algorand studio, sandbox, etc. to help developers. Algorand is currently supporting developers through the funding of their Grant Program. If you are interested in creating a finance 3.0 app or service on Algorand blockchain then you can apply for the Algorand Europe Accelerator program before 18th Dec, 2020 to be considered for seed funding and mentorship from Algorand and the program partners. 


Algorand Smart Contracts are written in TEAL (Transaction Execution Approval Language), a bytecode based stack language used to write stateful and stateless smart contracts. This is the most secure language to write smart-contracts because after the smart-contract is attached to the transaction, it has read-only access. The programs you create using TEAL should be short and run in-line along with all the important information for signature checking, transaction balance rule checking, etc. {Reference}.


Creating and running Dapps or smart-contracts on the Algorand blockchain is cheap in comparison to other blockchains. They have high levels of security and scalability because everything you create on Algorand blockchain runs directly on the layer-1 of Algorand blockchain. With Algorand, transaction fees are currently 0.001 Algo/transaction, are settled immediately (~5 seconds), and are stored permanently on the blockchain. Algorand’s support for assets enables the use of local currencies for exchange. All of these factors will improve customer satisfaction. {Reference-1, Reference-2}.

 


Conclusion:

Algorand, by comparison with Ethereum, EOS, and NEO has low costs to transact when creating, deploying, and running your smart-contract or Dapps. The Algorand blockchain has enhanced tools, developer documentation, and financial support for developers to kick-start their development. These facilities and features mean the Algorand blockchain is the best place to run your Dapps and smart-contracts.