Smart Contracts Guide

Master the development, deployment, and security of smart contracts. From basics to advanced patterns and security best practices.

What Are Smart Contracts?

Smart contracts are self-executing programs stored on blockchain that automatically enforce agreements when predefined conditions are met.

Definition

A smart contract is immutable code deployed on a blockchain network. It contains business logic that executes deterministically when triggered by transactions. Once deployed, it cannot be modified (in most cases).

Key Characteristics

• Autonomous - executes automatically
• Immutable - code cannot be changed
• Transparent - code visible to all
• Deterministic - same input always produces same output

Why Smart Contracts Matter

Smart contracts eliminate intermediaries, reduce costs, and enable new types of applications:

  • Eliminate trust requirements
  • Reduce execution time
  • Lower transaction costs
  • Enable complex automation
  • Create new business models
📝 Use Cases

DeFi protocols, NFT marketplaces, DAOs, insurance products, supply chain verification, and more.

Smart Contract Languages

Solidity (Most Popular)

The primary language for Ethereum and EVM-compatible blockchains. Statically typed, contract-oriented, and feature-rich.

When to Use

Building DeFi protocols, NFTs, DAOs, or any application on Ethereum, Polygon, BSC, or other EVM networks.

Rust & Anchor (Solana)

High-performance language used for Solana smart contracts. Offers memory safety and excellent performance.

When to Use

When targeting Solana blockchain for high-speed, parallel transaction processing applications.

Go (Hyperledger Fabric)

Used for enterprise blockchain smart contracts (chaincode) in Hyperledger Fabric networks.

When to Use

Building enterprise-grade permissioned blockchain applications with compliance requirements.

Move (Aptos, Sui)

Modern language designed for asset-centric programs with strong safety guarantees.

When to Use

Developing on next-generation blockchains with emphasis on safety and performance.

Smart Contract Development Lifecycle

1. Planning & Design

Define requirements, architecture, and security considerations before writing code.

2. Development

Write code using appropriate language. Follow best practices and design patterns.

3. Testing

Unit tests, integration tests, and edge case analysis. Use frameworks like Hardhat, Truffle, or Foundry.

4. Auditing

Security review by internal team or professional auditors to identify vulnerabilities.

5. Deployment

Deploy to testnet first, verify functionality, then deploy to mainnet.

6. Monitoring

Continuous monitoring for unusual activity, gas optimization, and performance metrics.

Security Best Practices

🔒 Input Validation

Validate all inputs and state before execution. Prevent reentrancy and overflow attacks through careful control flow.

⚠️ Gas Limits

Be aware of gas constraints. Avoid unbounded loops and expensive operations that could cause out-of-gas errors.

🔐 Access Control

Implement proper access control mechanisms. Use role-based security and verify caller identity before sensitive operations.

🎯 Checks-Effects-Interactions

Follow the CEI pattern: check conditions, update state, then interact with external contracts to prevent reentrancy.

⏰ Timestamp Dependency

Avoid relying on block.timestamp for critical logic. Miners have limited ability to influence it.

📋 Code Comments

Document complex logic, assumptions, and potential risks. Include NatSpec comments for all public functions.

⚠️ Common Vulnerabilities

Reentrancy: Avoid external calls before updating state. Use state locks or checks-effects-interactions pattern.

Integer Overflow/Underflow: Use Solidity 0.8+ which checks for overflows, or SafeMath libraries.

Unauthorized Access: Always check msg.sender and implement role-based access control.

Front Running: Be aware that transactions are visible in mempool. Consider commit-reveal schemes if needed.

Common Design Patterns

Factory Pattern

Main contract creates multiple instances of secondary contracts. Used in DeFi for creating pools or vaults.

Proxy Pattern

Separate logic from data storage to enable upgradeable contracts. Common in protocol upgrades.

Oracle Pattern

Fetch external data through oracle services. Critical for DeFi price feeds and external data integration.

Timelock Pattern

Delay critical operations to allow users to react to changes. Enhances protocol security.

Multi-Sig Pattern

Require multiple signatories for sensitive operations. Standard for governance and fund management.

Testing & Deployment

Testing Frameworks

Hardhat

JavaScript testing framework with excellent developer experience and debugging tools.

Truffle

Comprehensive development environment with integrated testing and deployment tools.

Foundry

Rust-based testing framework offering blazing-fast test execution and advanced features.

Testnet Deployment

Always test on testnets like Sepolia, Mumbai, or Fantom Testnet before mainnet deployment. This allows validation of functionality and gas costs without risking real funds.

Mainnet Deployment Checklist