What are the types of Ethereum smart contracts? How does it work?

[James A]

smart contracts types

ERC-20

Ethereum’s ERC-20 token is one of the best token standards, and many existing token standards run on few modifications made with this most efficient smart contract. These token standards support the ERC-20 token’s interchangeability or exchangeability.

Stable coins

The stable coin smart contract aids in tokenizing real-time assets like fiat currencies and etc. they are less volatile and more stable. These stable coin smart contracts built on ethereum work on maintaining the real-time value with the tokenized asset.

ERC-721

The ERC-721 is hitting the market very hard recently, and they are exclusively built for holding the Non Fungible tokens, which are unique and that have no replication or copies. ERC-721 in NFT is making the greatest pair that making the crypto market a trendsetter,

Advantage of Ethereum Smart Contracts

Feasibility

Ethereum smart contracts run independently, and every process is automated there is no need for an intermediary to respond or to delay the process. If there is no intermediate, there is very little chance of vulnerabilities or risk, and the cost will also be reduced to very rate,

Immutable

Ethereum smart contracts are using distributed servers to store the data or information, so if there is even a chance of server compromising or server break down, there will be multiple copies, and it can only be accessed by the smart contracts,

Trustworthy

Ethereum smart contracts are completely about how to structure them, so once the contract is defined and declared, there is no chance of tampering, or it never lets anyone modify even the owner of the smart contracts can modify. So it is more trustable and can be deployed in any of the business models.
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