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Introduction to Smart Contracts

What is a Smart Contract?

The concept of smart contracts was first proposed by Nick Szabo in 1995. A Smart contract is a computer protocol designed to disseminate, verify or execute contracts in an informational manner. Smart contracts allow transactions to be executed without a trusted third party, and the transactions are traceable and irreversible.

Its purpose is to provide a secure method that outperforms traditional contracts and reduces other transaction costs associated with contracts.

For Conflux network, a smart contract is a simple program that runs on the Conflux Network. Each instance of a smart contract is a collection of code and data that resides at a specific address on the Conflux Network. Since the state on the blockchain is fully deterministic, operations on smart contracts are guaranteed to produce the same results on all blockchain nodes. Furthermore, since smart contracts run on the blockchain, the decentralization and non-tamperable characteristics of the blockchain ensure certainty and security in the operation of the contract. Therefore, a wide range of decentralized applications (dApps) are created based on smart contracts, including games, digital collectibles (NFT), online voting systems, financial products (DeFi), etc.

There are two account types on the Conflux Network: user accounts and smart contract accounts. Once the smart contract is deployed, a corresponding smart contract account is created. Smart contract accounts have a CFX balance and they can also interact with other accounts. However, they are not controlled by users but by the program deployed on the network. User accounts are able to interact with smart contracts by submitting transactions that execute the functions defined on the smart contract. The smart contract enables us to define rules just like traditional contracts and automates the execution through codes.

Nick Szabo used the example of a vending machine to describe how real-world contractual obligations can be programmed into software and hardware systems. Each person simply puts the correct number of coins into the machine and can expect to receive a product in exchange. Similarly, on Conflux, a smart contract is able to perform a certain task and get a certain result under specified conditions.

Definition and Overview

Smart contracts on Conflux are programs stored on the blockchain that run when predetermined conditions are met. They are immutable and distributed, meaning once deployed, they cannot be altered and are executed by the network.

How Smart Contracts Work

These contracts are written in high-level programming languages like Solidity, similar to Ethereum. They interact with the blockchain to store, modify data, or send transactions, automating complex processes without intermediaries.

Benefits in the Conflux Network

Smart contracts in Conflux offer benefits like enhanced security, reduced transaction costs, and increased efficiency. Conflux's unique tree-graph structure facilitates higher throughput and lower fees, making it an ideal platform for deploying smart contracts.

Use Cases

The applications are diverse, ranging from decentralized finance (DeFi) and token creation to supply chain management and gaming. Smart contracts serve as the backbone for DApps (Decentralized Applications) on Conflux, enabling innovative business models and services.

Security Considerations

Security in smart contracts is paramount. Despite their immutability, vulnerabilities in code can be exploited. Conflux Network emphasizes best practices in smart contract development, including thorough testing and audits.


If you're interested in Smart Contracts Development on Conflux Network, please check out the following pages:

Further reading