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What are smart contracts? Types, benefits & use cases explained

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With the advancement of IT technologies and blockchain platforms, a new type of contract has emerged: smart contracts.

In this article, we’ll explore smart contracts and how they’re being used today.

What are smart contracts. Smart contracts explained

What is a smart contract? It is like a digital agreement that runs on its own, with all the terms and conditions written directly into the code. It operates on a blockchain network, so the contract automatically carries out and enforces itself when the set conditions are met.

There’s no need for intermediaries like lawyers or banks because the contract’s rules are transparent and unchangeable once deployed. Essentially, smart contracts in cryptocurrency streamline and secure transactions, making them faster, more efficient, and less reliant on third-party oversight.

Historical background

The concept of smart contracts dates back to the mid-1990s when computer scientist and cryptographer Nick Szabo first proposed the idea.

He envisioned a digital protocol that could automatically execute the terms of a contract when predefined conditions were met, similar to a vending machine dispensing a snack when the correct amount of money is inserted.

But it wasn’t until blockchain technology came along, especially with the launch of Ethereum in 2015, that smart contracts took off. Ethereum’s blockchain gave developers the tools to create and run code that could handle complex agreements on its own. This breakthrough led to a wave of new decentralized apps, shaking things up by automating transactions and eliminating the need for middlemen.

How do smart contracts work

Smart contracts use straightforward “if/when…then…” commands written into the blockchain. They automatically handle tasks like releasing funds, registering assets, or sending notifications once conditions are met. The blockchain’s permanence ensures transactions are visible only to authorized parties.

Smart contracts can get pretty complex, involving various conditions everyone has to agree on. This means deciding on how transactions are recorded, handling any exceptions, and figuring out how to resolve disputes. 

Every node in the network keeps a copy of all the smart contracts along with the blockchain and transaction data. When a contract receives funds, all nodes execute the contract’s code to agree on the result, ensuring that everything runs smoothly without a central authority. 

Not every blockchain can run automated contracts, so it’s good to know which ones do and which don’t. While platforms like Ethereum, Arbitrum, Avalanche, Base, and BNB Chain do, others, like the base blockchain of Bitcoin, don’t. The main difference is whether a blockchain can handle and store complex logic. Once a smart contract is set up, it usually stays as is, even for those who created it. This stability helps it resist censorship and prevents it from being easily shut down.

Types of smart contracts

Smart contracts in blockchain generally fall into three types:

Smart Legal contracts are designed to align with formal legal agreements, meaning the parties involved are legally accountable for meeting the contract’s terms. These can range from contracts that facilitate cryptocurrency-to-fiat conversions to those that handle real estate registrations.

Many existing smart contracts are legal in nature, underpinning various platforms including cryptocurrency exchanges, DeFi projects, GameFi projects, and blockchain-based platforms like NFT marketplaces and real estate tokenization platforms.

Decentralized Autonomous Organizations

DAOs are communities governed by a set of rules encoded into smart contracts. Once these rules are established, DAOs use these contracts to enforce them, provide legal mechanisms for protection, and impose penalties for breaches. Essentially, DAO smart contracts function as the organization’s laws and “digital” bureaucracy.

Examples include governance protocols for Decentraland, Uniswap, Polkadot, and MakerDAO. In these projects, governance is managed by holders of the native tokens, who can propose changes (like adjusting fee structures, altering blockchain code, or adding/removing parachains) and vote on them. DAO contracts handle the voting process and count the votes.

Application Logic Contracts 

ALCs operate under a governing program and are primarily tasked with managing interactions between this program and the blockchain. For instance, ALCs might facilitate the integration of Internet of Things devices with blockchain.

Benefits of smart contracts

The advantages of using blockchain are impressive for individuals, businesses, and governments.

Transparency: One of the biggest perks is transparency. Every transaction on a blockchain is public and can be verified, so once data is added, it can’t be changed. This means you can trust that smart contracts are secure and haven’t been tampered with, giving you peace of mind whether using them personally or for business.

Cost efficiency: Smart contracts take care of a lot of the legwork when it comes to setting up and managing agreements. Since they don’t require intermediaries like lawyers, banks, or brokers, they save money and streamline processes.

Building trust: Because smart contracts are automated, they reduce the chance of human error and build trust between parties.

Secure storage and backup: Losing data is a big risk for any organization. While backups are important, they’re not always foolproof. Blockchain technology, however, keeps data across many nodes, so it’s much less likely to be lost or tampered with as long as the blockchain itself is running.

Security: Smart contracts are incredibly secure, thanks to advanced encryption and security protocols. They’re some of the safest tools for handling transactions today, offering strong protection against hacking and tampering — just like cryptos.

Use cases

Token smart contracts in cryptocurrency are used to create, manage, and assign ownership of specific digital tokens on blockchain networks. These contracts program the functionalities of the tokens they issue, giving them various roles.

For instance, they might enable tokens to serve as utility tokens for apps (offering features or benefits within an application), governance tokens that give holders voting power in a protocol, security tokens representing shares in a company, or NFTs that represent ownership of unique physical or digital assets.

Smart contracts examples

Examples of smart contracts in action:

Ethereum. Ethereum allows developers to build dapps and underpins many DeFi projects. Smart contracts on Ethereum are super flexible, handling everything from turning real-world assets into digital tokens to automating transactions. It’s a hub for a lot of groundbreaking blockchain activity.

Then there’s Binance Smart Chain. It’s celebrated for its speed and efficiency. While it’s compatible with Ethereum, it offers lower fees and better performance, making it a great choice for various projects. It’s become a popular choice for DeFi projects and tokenization due to these advantages.

Polkadot. Polkadot is all about connecting different blockchains. It lets you create parallel blockchains that can interact with each other and supports smart contracts for various applications, enhancing blockchain interoperability.

Chainlink. Chainlink is like a bridge that connects smart contracts to the real world by providing them with external data. Thanks to its decentralized oracles, these contracts can access real-time information, which makes them even more dynamic and adaptable.

Future of smart contracts

The future of smart contracts is bright and full of potential. As technology keeps evolving, these contracts are set to get smarter, safer, and more efficient. This is thanks to ongoing upgrades in blockchain tech and better programming tools.

We’re likely to see this technology contracts revolutionize industries beyond finance and legal sectors, influencing areas like supply chain management and government operations. All in all, smart contracts are gearing up to be a major force in shaping the future of our digital world.



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Will Shiba Inu coin reach $1? Analysis and future outlook

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The value of Shiba Inu, the second-largest meme coin behind Dogecoin, has been fluctuating a lot recently, much like many other coins in the crypto market. On the whole, it’s been performing well, gaining almost 30% in just the last month. Can Shiba Inu reach $1?

SHIB’s low price makes it a tempting choice for investors wanting to dip their toes into crypto without risking too much. If Shiba Inu (SHIB) keeps its community engaged, rolls out new projects, and stays flexible with market changes, it could see some nice growth. 

What does the future look like for SHIB? Will Shiba Inu coin reach $1?

SHIB: what drives its value?

SHIB’s value is largely driven by social media hype, celebrity support, and a passionate community. Because its price can soar or drop dramatically with the latest online trends, it’s a pretty speculative choice for anyone looking to invest.

The SHIB ecosystem has expanded to feature ShibaSwap, a decentralized exchange where you can trade and stake your tokens. On top of that, there are great plans for Shibarium, a layer-2 blockchain that’s all about speeding up transactions and lowering costs.

However, at its heart, Shiba Inu’s true value still lies in its meme identity and the passionate support from its community.

Will Shiba Inu coin reach $1?

Doubts exist regarding the potential for Shiba Inu to reach $1, primarily due to its massive circulating supply. Nevertheless, enthusiasts believe that with strategic token burns, ongoing ecosystem development, and increased adoption, this possibility — though unlikely — could become more feasible over time.

For Shiba Inu to achieve a price of $1, more than 99% of its current supply would need to be removed. Given the existing supply of 589 trillion tokens, reaching $1 would require a market capitalization of $589 trillion, a figure that is nearly impossible based on current market trends. While some investors are enthusiastic, there’s a concern among others that aiming for such high targets could create false hopes.

When will Shiba Inu reach 1 dollar: conditions for growth

As mentioned earlier, token burns are essential for SHIB to reach $1. This would require significantly reducing the supply through large-scale burns that far exceed what has been achieved so far. Even though community burn initiatives are advancing, achieving a $1 price would call for a substantial surge in burn activities.

Adding SHIB to major platforms, building key partnerships, and encouraging broader use as a payment method could all raise demand. Yet, even with these enhancements, it’s unlikely that SHIB’s price will reach $1 without a considerable decrease in supply.

By rolling out layer-2 solutions like Shibarium, transaction speeds could improve and costs could drop, enhancing SHIB’s attractiveness to users. Yet, despite these efforts being beneficial for SHIB’s growth, they won’t suffice to achieve the lofty goal of $1.

SHIB’s price: future outlook

Let’s take a look at the potential price outcome for SHIB over the coming years.

Will Shiba Inu coin reach $1 by 2025?

It seems unlikely. The possibility of SHIB reaching the $1 mark is both bold and quite uncertain. While there’s definitely room for growth, a lot of it is held back by the massive supply of the coin, its speculative nature, and the hurdles that come with getting extensive use and real-world utility.

Will Shiba Inu coin reach $1 in 10 years?

Only time will tell. For SHIB to hit $1, it would need a mix of significant supply reduction through large-scale token burns, meaningful advancements in utility, and broad market adoption.

In the end, SHIB’s future really hinges on how well it can adapt and innovate, tapping into the passion of its community to stay relevant and boost its visibility.

Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.



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How many Pepe coins are there? Current supply & future outlook

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Launched back in April 2023, Pepe took only a short time to become one of the most popular meme coins in the world of crypto and one of the top ones alongside the likes of Doge, Shib, and others. At the time of writing, Pepe sits at the 30th rank among thousands of cryptocurrencies in terms of market capitalization. 

However, additional info is needed for any investor to make an informed buying or selling decision. Meme coins have different supply dynamics that include token burns, which can impact price trends and also the future of the meme coin.

In this article, we will discuss how many Pepe coins are there, the total Pepe token circulating supply, and what the future holds for this top-tier meme coin.

Pepe coin explained 

‘Pepe the Frog’ meme came to life with the birth of Pepe as this meme coin’s name is now taken in the same breath as the top-tier memes including DOGE, WIF, and SHIB.

While most cryptocurrency projects have a tangible use case that affects their price in the crypto world, Pepe, like other meme coins has not only survived but also become big due to a large social media influence, virality, and most importantly, a loyal fan base of token holders.

Since its launch, Pepe has seen an all-time high of 0.00001730 which is almost a 2600% pump. At the time of writing, Pepe is trading at 0.00001023 which is only 68% below its all-time high.

How many Pepe coins are there? - 1
Pepe all-time price chart | Source: TradingView

Total supply of Pepe coins 

At the start, the Pepe circulating supply was 420.69 trillion tokens, and no additional tokens were added to this supply after the token’s launch. This is great because a fixed supply means that price cannot be majorly impacted by the founding team by adding more tokens to the total supply of the Pepe. 

So the answer to how many Pepe coins are in circulation is the same as its fixed supply, i.e. 420.69 trillion coins. However, to further create demand, supply has to be reduced and for this purpose, the Pepe founding team often burns its token supply periodically. Last month on October 24, 2023, 6.9 trillion tokens were burned which led to a 20% rise in the Pepe token’s value.

Why Pepe’s supply matters to investors

In the current world we live in, a key metric on which we attract to everything is based on supply and demand. The lower the supply, the higher the demand for it. Since the Pepe team is not issuing any new tokens and also burning Pepe tokens periodically as explained above, it makes this whole process a deflationary mechanism which is attractive for investors.

A fixed supply of tokens creates scarcity which promotes demand, that also has a positive impact on price, considering all other important factors like market sentiments, trend, and constant development, remain in favor of the Pepe token. 

Comparing Pepe’s supply to other cryptocurrencies 

Meme coins require a strong community behind them to not only help them grow but also sustain for a long time in this volatile cryptocurrency market. While many meme coins do enjoy a good fan base in the crypto world, not many have the ideal set of token supply conditions for them to thrive long term.

Every meme coin has different supply dynamics and it is important to understand which one has better supply mechanisms as it plays an important part when deciding to invest in any meme coin project. 

Here we will compare Pepe’s token supply to two of the most popular meme coins, Doge and Shiba Inu.

PEPE vs. DOGE Supply

Dogecoin has a total supply of 146.38 billion tokens, however, unlike Pepe, it is not fixed, which means more Doge coins can be minted and added to the total supply of Dogecoin. This is an inflationary model, while Pepe has a deflationary model, which may indicate that Pepe coin’s demand can increase over time as compared to Dogecoin, provided all other market conditions remain the same. 

PEPE vs. SHIB Supply

Shiba Inu is another popular dog meme coin, but it has the largest supply when compared to Doge and Pepe, currently standing at 999.98 trillion tokens of which 589.26 trillion tokens are in circulation. The Shiba Inu team has a burn mechanism in place which is a similar strategy to the Pepe coin of burning tokens periodically to lower supply and increase demand among investors. 

While Shib’s total supply is fixed, it is more than double of Pepe’s fixed supply of 420.69 trillion which may prove to be a disadvantage in the long run, considering other market conditions also remain the same.

FAQs

How many Pepe coins were initially released?

The Pepe team released 420.69 trillion coins which will remain fixed and no new tokens will be added to this fixed supply. A good portion of the token supply has been allocated for maintaining good liquidity on centralized exchanges as well.

How many Pepe coins are mined daily?

Unlike the Doge coin, there is no mining mechanism for Pepe coins as the supply is fixed. This ensures that the demand of Pepe coins stays at par with market sentiment, and also acts as a preventative measure against inflation. 

Is it worth buying Pepe coin?

Buying the Pepe coin depends on your personal investment goals and risks. It is also important to keep in mind the volatility, market sentiments, and overall trend of the crypto markets before you invest in the Pepe token.



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How many Shiba Inu coins are there? Current supply & future outlook

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Shiba Inu (SHIB) coin is a major contender for the meme coin throne, often referred to as as the ‘Dogecoin killer’ by its supporters.

As the coin continues to grow, more people are interested in the tokenomics of this project and find themselves wondering how many Shiba Inu coins are in circulation.

Understanding Shiba Inu coin (SHIB)

Shiba Inu was created in August 2020 by pseudonymous developers. Unlike tokens that live on a dedicated network, (SHIB) is an ER-C20 token that exists on the Ethereum blockchain. As such, it has access to DeFi and related services, giving it an advantage over similar meme coins with less utility.

This utility, coupled with an unusually high token supply, which we’ll discuss in the next section, has proven to be a distinguishing factor that has helped Shiba Inu stand out.

The ecosystem now includes projects like ShibaSwap (a decentralized exchange), NFTs, and the play-to-earn game Shiba Eternity.

With a dedicated community, the coin has exploded in popularity, becoming one of the top 20 cryptocurrencies by market cap now today.

Total supply of Shiba Inu coins

The Shiba Inu supply upon its 2020 launch was 1 quadrillion SHIB tokens, or one thousand trillion tokens. When SHIB was released, it had the largest token supply in the world. Unsurprisingly, the massive Shiba Inu circulating supply made news headlines and helped the project gain attention worldwide.

How many Shiba Inu coins are there? - 1
Shiba Inu price page with TradingView chart widget | Source: crypto.news

It’s worth noting that a large supply doesn’t necessarily impact the value or use case for the project, and many in the space viewed the supply as a gimmick. For new crypto users unfamiliar with tokenomics, it may have also seemed that SHIB tokens were ‘cheaper’ than other crypto tokens, and therefore more affordable.

Of course, the price of an individual crypto token shouldn’t be conflated with the worth of the actual crypto project itself! We’ll dig into how to understand the supply of a cryptocurrency in more detail later on, but first, let’s take a look at how many Shiba Inu coins are available today.

Current circulating supply of Shiba Inu

The SHIB crypto has not maintained its supply, and it currently stands at 589 trillion SHIB. Ethereum co-founder Vitalik Buterin sent 410 trillion tokens to a dead wallet in 2021, effectively destroying or ‘burning’ the tokens and stating he would donate the remainder to charity.

The SHIB community as a whole has also burned or destroyed large portions of the initial supply in order to make SHIB deflationary, meaning it becomes scarcer over time. In true crypto fashion, the community decides when these burns will take place democratically, with those who own the most SHIB tokens having the most voting power.

While it’s likely that the dev team are major shareholders, their identity is unknown and it’s not clear who the main voters in the community are.

This is aimed at reducing the total amount of Shiba Inu coins in an effort to make the tokens scarcer and thus, ideally, worth more money. Again, this comes down to the percentage of the supply owned per investor. If an investor owns 10 tokens in a project with a supply of 100 tokens, they own 10% of the total supply.

If the community burns 50 tokens and leaves just 50 in the total supply, that same investor now owns 20% of the total supply instead of 10%, and this may translate into a value increase for that investor.

Of the 589 trillion tokens left in the supply, a portion remains in locked or burned wallets, and this adds further scarcity to the token supply.

Why supply matters to investors

The value of a cryptocurrency is the number of coins multiplied by the price of the coins.

Market cap = price x supply.

This is true for regular companies and their stocks as well.

For example, Apple Inc. stock is worth $170 per share, while Berkshire Hathaway stock is worth $685,000 per share.

So is Warren Buffet’s Berkshire Hathaway company worth more than Apple Inc.?

No.

Apple is worth three and a half times more than Berkshire Hathaway, with a market cap of $3.45 trillion vs. $984 billion.

That’s because Apple has more shares than Berkshire Hathaway. The number of shares really doesn’t impact the price or value of the company at all, it’s simply a fairly arbitrary way of dividing up shares for sale.

Similarly, when someone buys SHIB tokens, they are buying a percentage of the overall supply.

So a project could have an even lower token price than SHIB, but be worth more due to having a higher market cap.

Investors are not concerned with how many units of a stock or a cryptocurrency they have, but what value those units represent.

In short, investors need to look at the token price and total supply when calculating the market cap, and the market cap is the actual value of the project, not the token price.

Future of Shiba Inu supply

The future of the SHIB supply will play a major role in the price of the project.

While burns are not typically announced ahead of time, they happen regularly and can be tracked online through tools like the Shibburn account on x.com

It’s not clear how many SHIB tokens will be burned in the future, and the project team will likely use the burning mechanism in response to headwinds against price as they see fit. Other price factors to be monitored include community initiatives and staking activities as well as any strategic partnerships secured by Shiba Inu.

Comparing Shiba Inu’s supply to other cryptocurrencies

As we now know, the Shiba Inu supply is unusually high.

We also know that this supply alone does not dictate the worth of a cryptocurrency, but needs to be factored in alongside token price and market capitalization.

Shiba Inu vs. Dogecoin (DOGE): Dogecoin has a circulating supply of approximately 141 billion DOGE. Unlike SHIB, which has an active burn mechanism, Dogecoin has an unlimited supply with annual inflation.

Shiba Inu vs. Bitcoin (BTC): Bitcoin is known for its capped supply of 21 million BTC, with over 19 million BTC already in circulation. Bitcoin also has a halving mechanism whereby the number of bitcoins minted each year is reduced by half every four years, making Bitcoin an increasingly scarce and deflationary asset. Unlike SHIB, the Bitcoin halving is programmatic and pre-ordained.

Bitcoin will halve its supply every four years and stop minting new tokens altogether in the year 2140. The certainty of this deflationary mechanism is one of the aspects of the Bitcoin project that has made it so valuable.

FAQs

How many Shiba Inu coins were initially released?

Initially, 1 quadrillion Shiba Inu coins were released when SHIB was launched in August 2020.

How many Shiba Inu coins are left?

After Vitalik Buterin’s burn and ongoing community-led burns, the total circulating supply of Shiba Inu is around 589 trillion SHIB.

How many Shiba Inu coins are burned daily?

The number of SHIB tokens burned daily varies, as it is often community-driven. At the time of writing, over two billion tokens were burned in the past week.

How many Shiba Inu coins are mined per day?

Unlike Bitcoin, Shiba Inu cannot be mined. The entire supply was minted and released upon launch, and no new tokens will be created.

Who owns the most Shiba Inu?

Currently, the largest holders of Shiba Inu include decentralized exchanges (DEXs) and wallets linked to community initiatives. Vitalik Buterin remains a major holder, and the other holders are unknown.





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