Main Takeaways
- This article covers the basic concepts you need to understand about smart contracts.
- It also explains why programs are beneficial.
- Key features of Solana programs are provided.
Smart contracts on Solana
Understanding The Concepts
Before getting into the details of smart contracts on Solana, we want you to understand some key terms. Each blockchain has its own terminologies, and we want to ensure you understand the article.
Program = Smart Contract
While most blockchains use the term “smart contracts,” Solana calls them “programs.” Despite the different names, the functionalities are basically the same.
Account
Within the Solana network, the accounts will store data. Each account has a unique address. You can understand that accounts are the storage unit of Solana.
Instruction
Instructions are the most basic operational unit on Solana. Every transaction contains one or multiple instructions. These instructions tell the Solana network what to do. Programs will read these instructions and execute them accordingly.
What are Programs?
What are Solana’s programs?
Programs, or smart contracts, are combinations of codes that will execute specific outcomes when certain conditions are met. These programs process instructions from both users and other programs.
To simplify it, you can think of the principles of a vending machine. The condition for a snack is $1. If you input the correct amount of money and press the button, you will get a snack. On the other hand, if you put in less money, the machine refuses to give you the snack.
Why Programs are Beneficial
By removing the need for intermediaries and allowing for automatic execution based on predefined conditions, programs on Solana create a more efficient and trustworthy system for users.
Benefits of using programs
Speed and Efficiency
Once a program meets the pre-set conditions, it will immediately execute the expected outcome. This sets it apart from paper contracts, which require days or even weeks to execute a single transaction.
Trust and transparency
The program itself is the code that is available publicly on the Solana blockchain. Everyone can view the code and know exactly what the program does. This transparency has created a sense of trust that normal contracts can not. You don’t have to worry about a third party that takes a significant cut.
Accuracy
Since the program is written in code, once the program is deployed, it can only execute the agreement it is intended to do. This ensures there is no manipulation and brings assurance to all parties.
Savings
The fees and the cuts from intermediaries make the total expense of a traditional contract much higher than expected. Programs on Solana help the involved parties reduce costs by eliminating the need for intermediaries and automating the execution of terms and conditions.
Storage and backup
The data of programs on Solana is stored in several accounts. The blockchain ensures all transactions are always recorded and visible to relevant parties. The copies of a program are stored across the nodes in the network, meaning the contract can not be lost.
Key Features of Solana Programs:
- Statelessness: Programs on Solana are stateless, meaning they do not store data. The data they interact with is stored in separate accounts. These accounts connect to programs by instructions.
- Upgradable Contracts: The developer can still modify the program if upgrade authority is active. If the upgrade authority is revoked and set to “None,” the program becomes immutable and can not be adjusted.
- Verifiability: Solana makes sure that any third party can check the executable code released on-chain to ensure it matches the public source code. This process improves trust and transparency by letting you find differences between the source code and the launched program.
Conclusion
This article covers the programs (smart contracts) on the Solana network. By using Solana’s programs, users can take advantage of all the benefits they bring.