How to use Solidity from Ethereum

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To develop dApps, token games or any project on the blockchain, you need a programming language. As far as the most prominent and used of the blockchains, Ethereum, is concerned, Solidity is the main language used for programming Smart Contracts on Ethereum.

 

Summary

The limitations of the Ethereum programming language: Solidity

Unlike more popular languages such as Java, Solidity has limitations caused by the blockchain. Large amounts of data cannot be stored in variables. Computation is also limited by the use of gas.  It is a language designed specifically to take advantage of the Ethereum Virtual Machine, the function of which is to allow the execution of programs or smart contracts.

It was created by the programmers of Ethereum with the aim of being able to give rise to smart contracts, which enable the development of each transaction on the blockchain and generate a chain of transaction records in the blockchain system. Like other programming languages, Solidity has variables, functions, classes, arithmetic operations, string manipulation and many other concepts.

Thanks to this programming language, which is the most versatile and used by users, Ethereum is still the blockchain favoured by most developers, although its transaction costs are still very high. Other programming languages such as Viper, LLL, Mutan Serpent and Simplicity are much less widely used.

Besides being the most widely used language, it is also the only one that is officially supported. The motivation for developing an ad-hoc language lies in the fact that it was designed specifically for use within smart contracts.

A contract in the Solidity language would be like a kind of union of a code (the functions) and data (its state) located at a specific address on the Ethereum blockchain. Each contract contains declarations of state variables, functions, function modifiers, data structures and events.

The advantages of the Solidity language

One of the acknowledged advantages of this particular computer language is that the source code of programs made with it is publicly accessible from the Ethereum blockchain itself. Although it is in bytecode, it is possible to decompile it and obtain a fairly clear sample of the original source code.

This language also provides a number of very useful libraries that facilitate the programming of smart contracts, making the code reusable and easier to maintain.

In addition, the Solidity programming language and Ethereum’s EVM are said to be Turing complete, meaning that it can be used to simulate any Turing machine (devised by English mathematician and computer scientist Alan Turing). This means that this language is able to recognize or decide on other sets of data manipulation rules.

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Deploying smart contracts on the Ethereum blockchain

First of all, one or more developers must obviously create the smart contract by writing the appropriate lines of code, and then they must send it to the Ethereum network.

In technical terms, publishing it on the Ethereum blockchain means making all the nodes in the network receive and execute it. Once published, all instructions in it will always be executed by all nodes in exactly the same way.

Therefore, not only its publication but also the execution of instructions is irreversible once it is published on the blockchain.

Therefore, what really matters are the instructions it contains – which can be the most diverse – and how many people use it. Indeed, in order for the instructions of a smart contract to actually be executed, there must be one or more transactions that invoke them.

It is also worth remembering that these instructions generally involve the use of resources, such as data or tokens, so for them to actually be executed, all the conditions set as necessary must be met. 

Sometimes this data comes from outside, thanks to so-called oracles, while sometimes it simply comes from transactions on the blockchain.

Usually, the transaction that triggers the execution of the instructions contained in a smart contract involves the payment of a fee in ETH, and in many cases in order to actually trigger the execution also involves the payment or sending of tokens specific to the smart contract itself, or other smart contracts.

Technically, smart contracts are a type of account on the Ethereum blockchain, “controlled” by the network rather than a central entity. They can store ETH or tokens, and can also send transactions on the network autonomously.

Ethereum: how do smart contracts work?

The MiCA regulation, which came into force with the aim of uniformly regulating the cryptocurrency sector within the European Union, imposes new conditions that particularly concern:

  • – The mandatory authorization of crypto service providers
  • – The transparency of whitepapers
  • – The reserve requirement for stablecoin issuers
  • – Surveillance on systemic risks

One of the main impacts is precisely on stablecoins, like USDT, which will have to demonstrate that they have solid, transparent, and accessible reserve assets.

The platforms that wish to maintain the trading of these tokens within the European market will need to ensure that the assets are fully compliant.

Binance closes Tether trading in Europe to comply with MiCA regulations

The possible trigger: an update from Binance

At 10:30 UTC, Binance announced changes to the leverage and margin requirements for perpetual contracts on several pairs, including ACT/USDT. The announcement specified that the new rules would also apply to existing positions.

According to some analysts, this could have:

  • Activate automatic adjustments in arbitrage and market making bots
  • Trigger liquidations on cross-margin positions
  • Spread rapidly to the spot market as well, creating a domino effect

A pseudonymous user on X, Game, explained:

“The update hit the perpetual, but it also sent the spot into a panic. Those who had connected positions began to close them quickly, amplifying the crash.”

The phenomenon has spread beyond Binance, with similar movements recorded on:

  • Other centralized exchanges
  • Decentralized platforms (DEX)

In some cases, the tokens were quickly purchased by algorithmic or manual traders who took advantage of the flash crash.

Tokens like KAVA, in fact, were purchased at a discount and recovered value in a few minutes.

Flash Crash on Binance: ACT, DEXE and other crypto tokens plummet up to 50% due to an alleged bull trading bot error

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