How to Build Smart Contracts: a Full Guide

What are smart contracts?

Smart contracts are specified protocols that automate any transaction with the highest level of security and accountability. The project was conceived as a multi-purposed program that ensures the payment will be processed within both sides of the agreement. Let’s dive a little deeper.

You are a business owner or a representative of some company, whether it’s a fintech organization or manufacturing one, healthcare-related or else, and you need to pay for some materials. With smart contracts, your operation will be enforced automatically, according to the rules set in the code, with no ability to cheat.

We have described the one scenario that happens often and showcases it well — you are protected from fraud, timeline delays, breaches of undertaking, and it covers the whole point of what is smart contract development which we will be outlining in a few parts below. Here are some more details according to the tech side.

Based on our search, IBM says that this term is about digital contracts which are stored on blockchain cutting-edge technology, implied for no time-loss execution of some agreements. According to the words of a man who proposed this expression, Nick Szabo, he meant a mechanism for digital transactions, and it fully reports on today’s topic.

To describe the work process, after developing you are able to post it on a blockchain of your choice, with full control over its content (the rules you prescribed), and the other side of your agreement is able to make the case — transaction — under the enhanced protection.

As we have determined the basics, nothing stops us from discovering the actual crafting process in core stages to make it more convenient for both professionals and new kids on the block.

How to create a smart contract in 4 steps?

Deploying your first-ever solution that is based on blockchain is a daunting task that requires a plethora of tech nuances, technologies, as well as in-depth understanding of your requirements.

Still, we are here to determine core 4 phases that will definitely help you to set the agreement that meets your needs according to our 10+ years of experience in various fields, powered by working with Ethereum, Binance, TRON, Solana for enterprises, startups and small, mid-sized projects.

Skipping the talking staff, let’s delve deeper into the creation process that will save your time and efforts plus a tip that will discover how to handle maintenance and receive the highest level of customization.

— Step 1. Design your requirements.

Here we would like you to dedicate your time to the demands, depending on your industry and request for an agreement, for example, some of our customers represented decentralized finance and supply chain management.

Probably, if you open a code environment now, you will be staring at the blank space without knowing where to start, and we are talking not about the tech side — it’s advisable to answer a few following questions:

1. What is your purpose?
2. What is the blockchain of your choice?
3. Who is your final end-user?

It sounds simple until you plunge into this topic, trying to navigate through the turbulent ocean of needs and the core concept of automation. As we mentioned, there are numerous ways of usage, from proving ownership to protecting purchases and reaching out to round-the-clock translations.

Also, include determining such things as permissions + boundaries, verification for enhanced security and control, and in the interim, we move on to the development.

— Step 2. Code your contract.

The smart contract creation starts here, we will not provide the actual code parts as it depends on your requirements, choice of blockchain, and other points, like IDE (Solidity or else), frameworks, testing and debugging tools, etc. There is a profusion of capabilities that can simplify the building process: Remix, Foundry, Binance Smart Chain platform, and more.

We would like to note that secure practices are a must, so it’s better to consider protected libraries, constant written line reviews, and access control.

As for the tips, the proper tech partner or IT supplier will cover all the smart contract development services like design, building, deployment, integrations, debugging, ongoing support as you would like to simplify the whole process and entrust tech challenges to a third-party provider.

— Step 3. Conduct testing (and some more).

We have noted a few times that once it’s uploaded, it can’t be changed as it’s stated in the article from Wei Zheng “Cost-Benefit Modeling of Smart Contracts Applied to the Accounting and Auditing Field,” even by you as a creator. Therefore, it’s better to check everything twice before going live — in this case, posting it on blockchain for everyone.

What to examine when you decide to build a smart contract ? We recommend including various scenarios that can be applied for your niche, for instance, valid and invalid transactions and addresses of your token, security and vulnerability.

What if you skip this part praying for your coder to develop it well? Well, it’s a lottery since even senior architects can make mistakes, and for money-saving practice it’s better to invest money in the testing part.

— Step 4. Deploy and monitor.

For now, the network of your choice is ready to receive the program after verification that allows end-users to interact with your digital solution. Further, you have to control your contract within dealings, logins, accesses, and potential issues or ways to optimize it.

You have come a long way and here you go — fully equipped for such a lasting online journey that requires more than being a tech guru but becoming a researcher who is able to define the “Whys,” a tester to ensure it’s safe to use and will not lead to reputation loses, and more, like a Swiss knife.

As we have considered ​​how to create smart contracts, let’s focus on essential functionality that is common for them regardless of your area of expertise and operations.

What are the key features of smart contract development?

Functional moments are one of the most discussed across coders we have surveyed so that they represent some vital ones, common for every type of agreement according to your industry.

Through our research, we have discovered that beneficial notions from such a solution can be leveraged by almost every niche and business owner, for example, for peer-to-peer transactions, streamlined billings for clinics, automated rental tools for real estate ones, and more.

Therefore, here are some of the vital capabilities you are able to build within blockchain smart contracts development:

• Automation is part of the core elements (others we will also describe below) since it’s typically the main purpose of such service as it helps to avoid any human-based errors in scrupulous operations like lending and borrowing cryptocurrencies, facilitating NFT transactions, land management, etc.

  “Time is money,” isn’t it? — yes, it’s pretty cliche but it’s a working one as our customers said they were capable of increasing response time and short timeframes for deals, especially enterprise-related ones.

  On the other side, if you are trying to go viral (read as global or worldwide), blockchain smart contract development is a golden ticket for your company as despite time zones you can still securely and efficiently conduct related operations.

• Enhanced privacy is not a nice-to-have notion but crucial as any problems will lead to irreversible losses (because you remember it can’t be changed once deployed), for instance, your funds may be stolen. Rigorous audits in terms of this aspect will be helpful, as well as automated mechanisms that can react immediately in case of any emergencies.

  Across numerous possibilities for data breaking, it’s essential to have under-control authorization to ensure that only your third-part user can use the contract, and no one can manipulate your logic.

• Cost efficiency is a little scary topic as for some people it feels like chasing footsteps in the thick fog which can stop them on the track, trying to figure out how to develop smart contracts with minimum investments. That’s why this point is here, in terms of transactions in blockchain, or, to be more precise, “gas gees” which consists of “limit” and “price” components and can become costly for startups and small businesses.

  Reliable IT suppliers are skilled in implementing strategies that optimize money spending across optimization tools and improved storage usage, designing it more efficiently. Based on our background, the ability to manage a platform and use proven methods are also advantages, so here works the rule the more experienced the programmer is, the more you can save.

• Decentralization is the fortitude of DeFi which has a predicted revenue of $376.9m in 2025 and can’t be left behind our material theme. Smart contract development solutions in DeFi are about independence at the first place, used for land/borrow processes, exchanges and related.

  This point means no need for a third party, like no one interrupts or has to take jurisdiction over some tasks which simultaneously grow the loyalty from your customer or partner.

• Accessibility may look out of the league here but the point is that not everyone is a tech guru but would like to benefit from this technology, or you would like to make the deal fully secured and the other side needs to take a while and get into smart contracts.

  How to fulfill this challenge? — you can simplify the user interface and use skills in UX writing for buttons, making them obvious and clear or even apply for the very first feature and make it fully automated, as you decide.

From this perspective, creating smart contracts is an open sesame for more convenient cooperation, and you can receive more benefits for your particular area after diving deeper into collaboration with a vendor or learning this theme on your own.

If you are wondering if there is the necessity to implement all of them, our recommendation is yes as each of the characteristics has its role in such a creation and further implementation.

Still, you are able to select end-to-end offers that fit your demands, for example, consulting, to receive valuable insights, or audit after the coding sessions to ensure it will work well and define what traits are vital for your case.

We have fully disclosed all the nuances of functionality, so how about exploring the cost question? We have gathered together some crucial information to be overviewed based on the questions we receive the most from consumers who apply for our help.

What’s the price for developing smart contracts?

The smart contract market is not a joke, presenting impressive numbers and perspectives in growth, as the numbers say, up to 2028, it will cost more than $1460.3M with a 24.2% CAGR Compound annual growth rate).

Now, as many business runners, you may be wondering how much to pay and join the fast-paced niche, and we have a cost breakdown with a detailed overview of what influences those numbers.

• Blockchain skills scarcity. According to Binance, 2024 was not a good year for such experts as there were only 23,160 gurus and it may seem like a good point but as the technology is cutting-edge and demanding, finding smart contract developers is a challenge.

  The core solution is to ​hire software engineers who fit your budget, whether they are freelancers or part of an outsourcing company.

• Pricing model. If it’s surprising, the checkpoint is that, in some cases you can spend less or more when it comes to smart contracts development services.

  Here’s an explanation: applying for an hourly-based approach, you will pay only for the time spent on coding while fixed-price can be more beneficial as you will pay the pre-defined amount whether it will take not far from the set budget or the agency will get more work done for the same cost.

• Timelines. When you are on a deadline, it will definitely cost more as the provider has to decline other tasks and gain a workforce which is ready to work overtime to accomplish all the tasks.

We have named crucial standpoints that can vary depending on your requirements, so to make it more clear, here’s a comparison table that will simplify the understanding of how the cost is formed:

How to select a smart contract development company?

Blockchain is not a go-to technology that can be entrusted to every software developer, moreover, it’s a weighty investment, as we have determined above, and you would definitely like to cooperate with a provider first-class.

Transparency, security, premier coding practices — there are numerous things to be named in terms of choosing a vendor, but what is noteworthy and foremost? Here, we gathered together our comprehensive experience and demands of customers that are widely common when you decide to hire software developers:

• Check technology engagement. A blockchain smart contract development company has to represent its capabilities in case studies, with key outcomes, detailed testimonials, even video reviews if it’s possible. Therefore, you are able to examine its level of proficiency and decide on cooperation.
• Explore security nuances. From coding practices to overall understanding of its importance, it’s advisable to ensure the contractor can explain the approach chosen and how it will help you with extra protection, for example, encryption that is fundamental to blockchain.
• Ask what development methodology it uses. Being Agile adopters, we definitely can say that in 10 years of operation, it led to success within budget and timeframe meetings. Yet, the firm can apply Waterfall or others, which can be defined according to your needs.
• Investigate mindset. To develop smart contracts that matter, the agency has to be focused on transparency — in tasks, communication, compliance — as well as at meeting deadlines. In other words, it’s a complex point to be checked, but it is vital as you entrust your fate to them.

As you have educated yourself on this topic, you are able to opt for an IT supplier and get the project for your business objectives across blockchain smart contract development services.

When it comes to the choosing process, we recommend using pre-vetted lists, like our review of smart contract development companies where our specialists screened the available firms and determined the premier ones.

With careful evaluation, you will receive a seamless and hardness-free collaboration which leads to successful product implementation, and our summary is always ready to lend you a helping hand.

Wrapping up

For now, when transactions can be conducted faster than the lighter, you are aware of the whole development process that stands for smart contracts based on our experience in delivering DAO, dApps, and solutions for enterprises.

You are able to build smart contracts or hire coders who will get the ball rolling with your needs and represent an all-in-one system that encompasses vital criteria which you defined for yourself (like during the first step we have outlined above).

If you would like to receive the most out of this trending service, consider contacting Limeup as our software specialists have experience building apps for finance, banking, real estate, and healthcare industries. Schedule a free call, and let’s team up for your successful solution.