Blockchains with the Smartest Contracts and Best Safety Profiles

The blockchain technology landscape shows newer blockchains outperforming in smart contract deployment. 

Smart contracts signify on-chain activity, such as creating tokens or NFTs, and more complex processes like trading, swaps, or identities.

Telegram’s dominance in smart contract deployment

Telegram’s native blockchain leads in the number of smart contracts deployed, surpassing Ethereum. Unlike Ethereum, Telegram’s blockchain is incompatible with the Ethereum Virtual Machine (EVM) and utilizes a different approach to innovative contract development. Telegram uses the FunC programming language and operates as an open-source network. This blockchain hosts various applications across multiple categories, including wallets, marketplaces, gaming, and social spaces.

One significant feature of Telegram’s blockchain is its ability to host multiple trading bots that automate decentralized services. It also provides a sample of contracts that can be templates for other projects. This extensive deployment of contracts indicates a vibrant and active ecosystem.

Polygon is the second most widely used Layer 2 (L2) solution, particularly favored during the DeFi, Web3, and gaming boom 2021. Polygon’s appeal lies in its ability to deploy contracts safely. Users can verify smart contract addresses through Polygon’s native blockchain explorer, adding a layer of security. Polygon also leads in the number of contract deployers, indicating a broad and active developer base.

The surge in contracts on Polygon can be attributed to its scalable and low-fee structure, making it an attractive option for deploying numerous smart contracts. Unlike Telegram, where centralized activities might dominate, Polygon’s activity suggests a diverse and decentralized development community.

Other notable blockchain networks

Several other networks have also seen a significant number of smart contract deployments. TRON, Arbitrum, ZKSync Era, and BNB Chain are among the leaders in this metric. Base, the tokenless blockchain by Coinbase, is an outlier in this category, which has attracted over 887.5 on-chain entities deploying smart contracts.

The metric of smart contract deployment provides insights into the dominance of various networks in 2024. Layer 1 (L1) and Layer 2 networks compete with Ethereum across different metrics. While Ethereum still dominates in terms of fees and active wallet counts, the generation of smart contracts is a proxy for developer activity and new token creation trends.

The deployment of numerous smart contracts increases exposure to potential malicious behaviors. Smart contracts written in Solidity, Python, or other languages can be vulnerable to attacks. Projects often advertise their audit status, and end-users must verify the security audits of these projects. BNB Chain and Ethereum remain the most frequently attacked networks.

Some smart contracts have shown vulnerabilities without resulting in actual exploits. However, any minor vulnerability in contracts related to decentralized finance (DeFi) or value operations can be costly. When involved in bridges, wrapped protocols, or other mechanisms generating new tokens, these contracts are especially vulnerable.

Recent smart contract vulnerabilities

In the past month, several smart contracts have been compromised. Telegram’s TONUp lost around $106K due to a flawed smart contract. Similar attacks have affected BNB Chain applications like Yon and RedKeyGame. One of the most significant hacks in the past week involved the Velocore decentralized exchange (DEX), which lost $6.8 million in ETH due to a smart contract vulnerability.

The Orion liquidity aggregator also faced an attack, highlighting the ongoing risks in the DeFi sector, where smart contracts hold substantial value and locked tokens. In the past week, the TLN Protocol on the BNB Chain lost approximately $280K through a smart contract vulnerability.

The post Blockchains with the Smartest Contracts and Best Safety Profiles first appeared on Coinfea.