International Research Journal of Advanced Engineering and Science ISSN (Online): 2455-9024 321 Husneara Sheikh, Rahima Meer Azmathullah, and Faiza Rizwan, “Smart Contract Development, Adoption and Challenges: The Powered Blockchain,” International Research Journal of Advanced Engineering and Science, Volume 4, Issue 2, pp. 321-324, 2019. Smart Contract Development, Adoption and Challenges: The Powered Blockchain Husneara Sheikh 1 , Rahima Meer Azmathullah 2 , Faiza Rizwan 3 1, 2, 3 Computer Science, Prince Sattam Bin Abdalaziz University, Wadi Addawasir, Riyadh, Saudi Arabia, 19911 Email address: 1 h.sheikh@psau. edu. sa; 2 a.rahima@psau. edu. sa, 3 r.faiza@psau. edu. sa Abstract-- The purpose of this paper is to understand smart contracts, its benefits over traditional agreements and technical explanation about its execution and deployment. We have highlighted its origin, characteristics and adoption among different industries and its purpose in the blockchain world. We will also discuss the significant mechanism and their communication for the Blockchain and Ethereum to work. This paper will also explain about concepts of Blockchain and Ethereum in brief for scripting Solidity contracts. Finally, we conclude the discussion with its benefits and hypothesis. Keywords-- Blockchain; Ethereum; Smart Contract; Use Case. I. INTRODUCTION TO SMART CONTRACT The term smart contract appeared over twenty years ago and has emerged with blockchain technology. This concept and idea of implementation and saving smart contracts in a distributed ledger has been offered by Nick Szabo, a cryptographer. The innovation and impact of technology from IoT to AI to Blockchain has already taken over many industries. The application of blockchain have achieved tremendous force in terms of decentralized and immutable distributed databases for few years. II. SMART CONTRACT DEFINITION What are smart contracts? Smart contracts are programming code which stored on blockchain and automatically execute when predetermined and programmed terms and conditions are met. The advantages of smart contracts are mostly required for business relationships where it is used as an agreement between the business alliances so that they can rely on consequences without involving any intermediary. A smart contract is a legal contract between two parties in the form of programming code. The programmed agreement is unaltered and stored on distributed database which executes on the blockchain. All the transactions of the smart contract are processed by the blockchain when the conditions in the agreement are matched as there is no intermediary involved. III. SMART CONTRACT EXPLANATION A. History/Origin Nick Szabo, a cryptographer originated with an idea of recording contracts in a coding form in the year 1994. This pre-defined the contract is a set of rules that executed automatically if the conditions are matched without involvement of any intermediary. Smart contracts are developed on many different blockchain platforms like Ethereum. It is a simple decentralized mechanism. The pre- defined code simplifies, authenticates, and implements the performance of an agreement or transaction. B. Simple Explanation i. What do Smart Contract do? Smart contracts can simplify the complex and tedious process of any transaction which requires more paper work to identify the credentials of a person. The blockchain technology can make transactions secure and solidify as it stores all the personal information for verification and reduces the repetitive task to make quick decision for the customer. The smart contract is a coded agreement to be made between the bank, seller or dealer and the buyer or lender. The transactions declared completed once the seller receives the payment from the buyer and the buyer hold the item based on the agreed terms and conditions. The smart contract executed automatically without interference of any third party and makes the transaction reliable. The transaction is recorded in blockchain as it is shared between the participants and can be viewed at any time. This mechanism comprises of digital assets and the participating parties who deposit assets into the smart contract. The digital assets are then redistributed to all the participant parties as per the built formula based on the definite data, unknown during the commencement of the contract. Fig. 1. Smart contract mechanism The smart contract should not be confused with legal contracts agreed by law or courts. This can only be fully implemented in few years if they rely on its emerged technology and if the legal standards are approved. ii. Characteristics of a Smart Contract Smart contracts are used to track real-time performance and can save huge costs. Smart contracts have information