The History of Ethereum Smart Contracts: Contracts that changed the game
Ethereum’s smart contracts are more than code; they are important programs that automate agreements, manage applications, and power digital assets. However, only a few smart contracts have truly shaped history. Launching your own NFT collection or token wasn't as simple as finding smart contract development solutions that do half of the work for you! Smart contracts have come a long way in their short history.
So, without further ado, let's dive into some of the smart contract pioneers, that created new use cases for the entire EVM ecosystem:
The Origin of Smart Contracts: Ethereum’s First Deployments
Firstly, the Ethereum network was co-created by Vitalik Buterin and his team, including Gavin Wood, the author of Ethereum’s programming language Solidity. Their goal was to expand blockchain functionality beyond financial transactions, by building an infrastructure similar to Bitcoin, but with programmable contracts.
The Greeter Contract
One of first smart contracts ever written was called the "Greeter" contract. Just like it sounds, it was simply built for greeting people by storing and returning a greeting string. While it wasn’t a contract that caught on (it was simply a test) it provided the foundational framework of Ethereum smart contracts today, enabling the ecosystem’s growth into decentralized finance (DeFi), gaming, and beyond.
MakerDAO: Pioneering Decentralized Finance (DeFi)
Rune Christensen founded MakerDAO in 2015 to create DAI, the first decentralized stablecoin. The goal was to stabilize cryptocurrency volatility through a decentralized and automated process. MakerDAO changed the course of history with smart contracts as the first application to demonstrate the viability of trustless lending and borrowing. Its contracts are secure, transparent, and fully autonomous, which laid the groundwork for the DeFi ecosystem.
CryptoKitties: The pioneer of NFT smart contracts
Dapper Labs developed CryptoKitties in 2017 to showcase Ethereum’s capability for creating digital collectibles. The idea was to use blockchain to establish verifiable ownership of unique digital assets. CryptoKitties was the first project to popularize NFTs, demonstrating the technology’s potential for digital ownership. Its NFT smart contract was used as a perfect example for years following.
Uniswap: Redefining Decentralized Exchanges
Hayden Adams launched Uniswap in 2018, inspired by an idea from Ethereum co-founder Vitalik Buterin. Adams wanted to create a decentralized exchange (DEX) without relying on order books. Uniswap transformed trading by eliminating intermediaries: its AMM model and smart contracts allowed anyone to provide liquidity and earn fees, fostering decentralized financial participation. Uniswap's smart contract design has also been replicated by countless other DEXs, such as SushiSwap and PancakeSwap.
The DAO: A Lesson in Smart Contract Risks
The DAO was a decentralized venture fund built in 2016 by Christoph Jentzsch and other Ethereum developers. Its aim was to automate governance and investments via smart contracts. The DAO raised over $150 million, becoming the largest crowdfunding campaign of its time. It showcased the potential of decentralized autonomous organizations (DAOs) to remove traditional management structures.
A vulnerability in the DAO.sol smart contract was exploited, leading to the loss of $60 million in ETH. This incident resulted in Ethereum’s controversial hard fork, splitting the network into Ethereum (ETH) and Ethereum Classic (ETC). The DAO’s legacy is a cautionary tale that underscored the importance of secure smart contract auditing. Modern DAOs, like those managing MakerDAO and Aave, have since adopted rigorous testing and governance mechanisms.
Compound: Bringing Interest to DeFi
Robert Leshner and Geoffrey Hayes founded Compound in 2017 to provide decentralized borrowing and lending services. Their goal was to create a money market that allowed users to earn interest or take loans without intermediaries. Compound introduced the concept of liquidity mining through its COMP governance token. This incentivized participation, sparking the DeFi boom of 2020. Its governance model inspired other DeFi protocols and the smart contracts that power them.
Aave: Revolutionizing Lending with Flash Loans
Stani Kulechov founded Aave in 2017 to improve decentralized lending. Aave introduced innovative features like flash loans, allowing users to execute arbitrage, liquidation, or rebalancing strategies within a single Ethereum transaction. Flash loans introduced novel use cases for DeFi, showcasing the power of smart contracts for instantaneous, trustless operations.
The History of Smart Contracts is still ongoing
Smart contracts are the backbone of the Ethereum ecosystem, enabling decentralized applications that challenge traditional systems across industries.
These smart contracts all introduced something unique—whether it was decentralized governance, stablecoins, NFTs, or new financial instruments. They addressed real-world problems, inspired global adoption, and set new standards for security, functionality, and creativity.
As Ethereum continues to evolve, the role of smart contracts will only grow. These contracts not only represent milestones in the history of smart contracts but also provide a glimpse into a future where automation, transparency, and decentralization redefine the way we interact with technology and finance.
Want to look at more examples of smart contracts? Check out our EVM smart contract list below!