smartcontracts

Smart contracts are self-executing programs stored on a blockchain. They automatically run when predefined conditions are met, without needing a middleman like a bank, lawyer, or broker.
The idea was first proposed by Nick Szabo in the 1990s, long before blockchain became popular.
How Smart Contracts Work
Let’s break it down simply.
1. Written as Code
A developer writes the contract logic in a programming language. For example, on Ethereum, smart contracts are usually written in Solidity.
The code defines:
Rules
Conditions
Actions
Example:
> If Person A sends 1 ETH, then automatically transfer ownership of a digital asset to them.
2. Deployed to the Blockchain
Once deployed, the smart contract:
Lives on the blockchain
Has its own address
Cannot be changed easily (immutable in most cases)
Because it runs on a blockchain, it is:
Transparent
Tamper-resistant
Decentralized
3. Triggered by Transactions
A user interacts with the contract by sending a transaction.

The blockchain network:
Verifies the transaction
Executes the contract code
Records the result permanently
If conditions are met, the programmed action happens automatically.
Simple Real-World Example
Imagine a vending machine.
You:
Insert money
Select a product
If the amount is correct → the machine releases the item.
A smart contract works the same way:
Input (crypto + request)
Condition check
Automatic output
No cashier needed.
Where Smart Contracts Are Used
They power many blockchain applications:
DeFi (Decentralized Finance) – Lending, borrowing, tradingNFTs – Ownership of digital art and assetsSupply chain trackingInsurance automationGaming assets
Most decentralized applications (dApps) run on smart contracts, especially on platforms like:
EthereumSolanaBinance Smart Chain
Key Benefits
No intermediariesLower costsFaster executionTransparent rulesHard to manipulateLimitationsBugs in code can’t easily be fixedDifficult to change once deployedLegal status varies by countryDepend on external data sources (oracles)
$ETH
$PAXG #MarketRebound
$DENT

As of January 14, 2026, contracts now pay for the computational resources they actually consume.
The update was first validated in a live testnet environment, then rolled out to mainnet, introducing organic burn directly proportional to the work a contract performs.
Why Execution Fees Matter
Every smart contract on Qubic maintains an execution fee reserve, essentially a prepaid balance that covers its compute costs.
When that reserve is depleted, the contract doesn’t disappear, but it does go dormant. It can still receive funds and respond to basic system events, however its core functions can’t be called again until the reserve is replenished.
Previously, a contract only needed a positive balance to remain active. The system verified that a reserve existed, but execution costs were not deducted based on actual computation. That has now changed. Contracts are charged proportionally to how long their procedures take to execute, aligning fees directly with real computational work.
How the System Works
The fee mechanism operates in phases, each lasting 676 ticks. Here's the process:
Execution and Measurement: When computors run your contract's procedures, they measure how long each execution takes.
Accumulation: These measurements build up over a complete 676-tick phase.
Consensus: Computors share their measured values through special transactions. The network aggregates these reports and uses the  two-thirds percentile to determine a fair, agreed-upon execution fee.
Deduction: The consensus fee gets subtracted from the contract's reserve in the following phase. This phase-based approach keeps consensus efficient while ensuring accuracy across the network.
Phase n-1          Phase n              Phase n+1
(676 ticks)        (676 ticks)          (676 ticks)
    │                  │                    │
    └── Fees computed ─┘── Fees deducted ───┘
Who Pays for What
The system follows a simple principle: whoever initiates an action pays for it. When a user calls a contract procedure, that contract's reserve covers the cost. When Contract A calls Contract B, Contract B's reserve gets checked before execution proceeds.
Some operations remain free of execution fee checks:
Operation
Fee Check
User procedure calls
Yes
Contract-to-contract procedures
Yes
Contract-to-contract functions
Yes
System callbacks (transfers, etc.)
No
Read-only functions
No
Epoch transitions
No
Functions that only read data never cost anything. They provide access to contract state without modification, so they run regardless of reserve status. For more details on how procedures and functions differ, see the QPI documentation.
What Builders Should Do
If you maintain a smart contract on Qubic, consider these steps:
Review your reserve status. Check contracts.qubic.tools to see current fee consumption for your contract based on execution patterns. You can also monitor contract activity through the Qubic Explorer.
Examine your procedures. Code that returns early, uses fewer resources. Procedures that loop excessively or repeat redundant operations will cost more.
Plan for sustainability. Contracts can replenish their reserves through the qpi.burn() function or through QUtil's BurnQubicForContract procedure. You can execute these operations using the Qubic CLI. It is recommended that you ensure your contract includes a reliable mechanism for maintaining adequate reserves throughout its lifecycle.
Handle errors gracefully. When calling other contracts, check whether those calls succeeded. If a target contract has insufficient fees, your call will fail and return an error code. Build in fallback logic where appropriate.
For developers new to building on Qubic, the smart contract development guide provides a solid starting point.
What Computors Should Know
Computors have a new configuration option: the execution fee multiplier. This setting converts raw execution time into fee amounts. The network reaches consensus using the two-thirds percentile of all computor-submitted values, preventing any single operator from dramatically shifting costs.
For more information about running a computor, refer to the computor documentation.
Refilling Reserves
Three methods exist for adding to a contract's execution fee reserve:
Internal burning: Contracts can call qpi.burn(amount) to convert collected fees into reserve balance. They can also fund other contracts using qpi.burn(amount, targetContractIndex).
External contributions: Anyone can send funds to the QUtil contract's BurnQubicForContract procedure, specifying which contract should receive the reserve boost.
Legacy method: QUtil's BurnQubic procedure adds specifically to QUtil's own reserve.
These mechanisms tie directly into Qubic's tokenomics, where burning serves as the core deflationary mechanism rather than traditional transaction fees.
Protection for Users
The system includes built-in safeguards. If you send a transaction to a contract with depleted reserves, any attached funds are automatically returned. You won’t lose money because a contract failed to maintain its balance.
Read-only queries remain available even for dormant contracts. You can check its state at any time, but state-changing procedures won’t run until the reserve is replenished.
What This Means for Qubic
This update marks a meaningful shift in how Qubic handles smart contract economics. 
Contracts that perform more work, pay more. Efficient code becomes genuinely valuable. And the network gains a sustainable mechanism for burning tokens tied to actual utility rather than arbitrary fixed amounts.
If you build on Qubic and haven't yet reviewed your contracts under this new model, now is the time. For technical details, see the full reference documentation on GitHub.
Join the Qubic Discord or Telegram community to ask questions, share ideas, and discuss implementation strategies with other builders.or Telegram community to ask questions, share ideas, and discuss implementation strategies with other builders.
#Qubic #SmartContracts

When I started to learn about Solana, I researched how it actually runs smart contracts, and that is when I came to know about the Solana Virtual Machine, also called SVM. In simple words, the SVM is the main engine of the Solana blockchain. It is like a powerful computer system that lives inside the blockchain and makes sure all smart contracts run properly. I have seen that without a virtual machine, a blockchain would only send and receive transactions, but with a virtual machine, they become platforms where people can build applications, games, DeFi projects, NFTs, and many other tools.

In my search, I found that the SVM is different from the Ethereum Virtual Machine. Ethereum was the first to introduce the idea of a blockchain virtual machine. Many networks followed Ethereum’s design, but Solana decided to take a different path. The SVM focuses on speed and efficiency. It can process thousands of transactions every second, which means it will have much higher throughput compared to older systems that process transactions one by one.

When I studied how the SVM works, I learned that Solana has many validator nodes spread around the world. Each validator runs its own copy of the SVM. These validators check transactions and smart contracts. If someone uses a decentralized app on Solana, like buying digital art, the smart contract for that action is executed inside the SVM. The validator checks the rules, confirms the payment, updates ownership records, and then shares the updated information with the rest of the network. After that, they reach agreement, which is called consensus.

One important thing I discovered is that the SVM uses parallel processing. This means it can run many transactions at the same time. Traditional systems like Ethereum process transactions in sequence, meaning one after another. When traffic becomes high, they become slow and expensive. Solana’s design allows multiple smart contracts to run together, which increases speed and reduces delays.

While researching deeper, I came across something called SeaLevel. SeaLevel is a special part of the SVM that manages parallel execution. If two transactions try to change the same account at the same time, there could be errors. SeaLevel solves this by clearly defining which parts of the blockchain state a transaction will modify. If transactions do not affect the same data, they run together. If they touch the same data, they are processed in order. This keeps the system accurate and stable.

Another thing I learned is that the SVM mainly supports Rust as its programming language. Rust is known for performance and security. I have noticed that Rust can be harder to learn compared to Solidity, which is used in Ethereum. This becomes one of the challenges for developers who are new to blockchain development. Still, Rust gives strong control over memory and performance, which helps Solana stay efficient.

In my research, I also understood that parallel systems can be complex. When many transactions run at the same time, maintaining stability and avoiding conflicts becomes harder. The SVM must carefully coordinate everything. So even though it is fast, it requires advanced engineering to keep it secure and reliable.

After learning about all this, I can say that the Solana Virtual Machine is the core technology that allows Solana to be fast and scalable. It transforms the blockchain from a simple transaction network into a full application platform. They become more powerful because of parallel execution and high performance design. Even though there are challenges like system complexity and the learning curve of Rust, the SVM plays a major role in making Solana one of the fastest smart contract platforms today.

$SOL

#solana #SVM #BlockchainTechnology #SmartContracts