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The idea of smart contracts was first conceived in by Nick Szabo, a computer scientist and cryptographer. Related economic goals include lowering fraud loss, arbitration and enforcement costs, and other transaction costs. Some technologies that exist today can be considered as crude smart contracts, for example POS terminals and credit cards, EDI, and agoric allocation of public network bandwidth.

Although smart contracts only really became possible with the creation of Bitcoin in , it was Ethereum that embraced it completely. This made it possible to execute and store smart contracts within a distributed ledger. In its current state, smart contracts are the building blocks of all blockchain technology. Smart contracts use the network of nodes to validate whether aspects of the agreement have been completed. Contract accounts in Ethereum are able to pass messages between themselves as well as doing practically Turing complete computation.

The code of a smart contract is usually written in some high level language such as Solidity and then compiled into bytecode to be uploaded on the blockchain. To create a solidity smart contract you can use Visual studio code with Solidity extension or Remix. Truffle is a testing framework and asset pipeline for Ethereum-based blockchains.

The Truffe Framework website includes Ganache, which is a personal blockchain for Ethereum development. This makes it easy and quick to deploy contracts, develop applications, and run tests. For the purpose of this article, we will be using Solidity and Remix to write the smart contract that can be published to our Ethereum network in Azure. Name the file to your liking, and enter the following code.

You can use Remix to interact with the contract. First thing to do is compile it. In the compile tab on the right, click Start to compile. You should see the following message. The contract is a simple one, just to demonstrate a few features of Solidity. As you can see, the language allows for inheritance. For example, string concatenation is not natively supported. The only way to manipulate strings is to convert the array of characters in a string to bytes.

Check out the links at the bottom of the article on ways to deal with this. Due to the distributed and asynchronous nature of blockchain, events are important. A lot of smart contracts work as a state machine. At any given point in time, the contract is in one and only one state, during which only state-specific functionality is possible.

The contract can transition between these states in a pre-defined way. When you writing the code of your contract, you will undoubtedly see loads of examples on the web. As Solidity is improved sample code may not work immediately, or you will see warnings that the syntax you use is deprecated. Either change your code, or use a pragma directive to specify the compiler version your code is good with.

In fact source files should be annotated with a version pragma to reject being compiled with future compiler versions that might introduce incompatible changes. Since you have already deployed the Ethereum consortium network on Azure, can go to the administrator page to get a view of your blockchain network and sanity check the deployment state. To find it, select the resource group that was deployed.

Then, select Overview, and click on the link immediately under Deployments that shows the number that succeeded. The following deployments should be visible. Click on the deployment resource that starts with microsoft-azure-blockchain. In the Outputs-tab you will see the location of the various resources that have been created as part of this blockchain.

Copy this address to your clipboard, and then go back to your Remix page. Under the Run tab in the top right corner, select Web3 Provider. There is a solid chance that you will hit an error stating that Remix could not connect. Jamie Dimon was once convinced this year would see a booming economy, but not even he can stand in the way of the forces destabilizing the global economy.

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