Top Smart Contracts Tokens by Market Capitalization

What Are Smart Contracts?

Smart contracts are self-automated computer programs or transaction protocols that are used to automate predetermined terms and conditions within the blockchain. More specifically, a smart contract is the code that is stored on the blockchain and works to process transactions when certain conditions are met between two parties. Like any other form of contract or agreement, a smart contract works in a decentralized fashion to honor both sides of the bargain, as a paper (or digital) contract should. While smart contracts are not legally-binding agreements, certain governments around the world like in Belarus, as well as several states within the United States, have taken steps to develop legally-recognized provisions surrounding them.

Check out our beginner’s guide to what a smart contract is.

What Are the Benefits of Smart Contracts?

Smart contracts are a cost-efficient tool to execute and automate any set of tasks within a network. By automating transactions without the need of a central authority to mediate, both individuals and conglomerates can actually reduce potential risks while saving money and time. As Nick Szabo, the inventor of smart contracts, once summarized in layman terms: smart contracts can be compared to buying snacks at a vending machine. The vending machine is pre-programmed to function and can operate without employees.

Smart contracts are immutable and distributed among the blockchain, providing a simple and secure mechanism for multiple parties to do business, or execute any agreement. The distributed aspect of the smart contract platform entails that no single party can tamper with the transaction. The technological structure behind smart contracts provides for a diverse array of use cases, and can be applied towards digital identity, clinical trials, supply chain management, international trade, financial data collection, gaming technology and more.

The basis of the smart contract follows an “if/then” conditional format in which a subset of variables enables different outcomes to occur once the conditions are met. Therefore, the potential for smart contracts can be rather open-ended, as you can program them for numerous functions.

While smart contracts are immutable, they are not completely risk-free. Check out what smart contracts risks you are potentially exposed to.

What Are the Top Smart Contract Tokens?

Ethereum is famously one of the largest smart contract enabled platforms and employs its own programming code known as Solidity. With this language, users can create their own applications via smart contracts. The ERC-20 is the token Ethereum standard for developing new smart contracts on the blockchain, and is used for all smart contracts on the network. Ethereum implements a standard to enable this function, specifically outlining a set of guidelines necessary to deploy smart contracts. The ERC-20 standard is also used by other cryptocurrencies including OMG Network, Maker and Basic Attention Token.

Read about our beginner’s guide to learning Solidity.

Aside from Ethereum and their smart contract token, Binance has launched their own extensive smart contracts platform. Dubbed BNB Chain, this network has been specifically designed to run smart contract applications and is fully compatible with Ethereum.

Check out our deep dive into how smart contracts are used in DeFi.

But Ethereum and Binance are not the only popular smart contract tokens. In terms of their current market cap, Cardano, Solana, Avalanche and Chainlink are also highly valued smart contract enabled networks that may hope to surpass Ethereum some day. For more specific data, CoinMarketCap provides real time information on the top smart contract tokens by market capitalization.