Chainlink — presenting hybrid smart contracts
Web3 world is practically about smart contracts and features they are implementing, like Dapps, DeFi, etc.
Web3 world is practically about smart contracts and features they are implementing, like Dapps, DeFi, etc.
Those smart contracts usually includes decentralized data from blockchain, but what if it is demanded to mix off-chain data with on-chain?
Agenda:
- Introduction,
- Definition,
- Why off-chain data are needed in smart contracts ,
- Hybrid smart contracts,
- How it works,
Definition
ChainLink is The Oracle Standard Network, which provides capabilities to implement real world off-chain data in decentralized smart contracts. ChainLink maintains it super secure and smooth.
Why off-chain data are needed in smart contracts
Decentralized smart contracts can not reach the real world centralized data due to nature of blockchain ecosystem. That’s why it was impossible to leverage external data.
Some smart contracts solution needs to compute real world data like weather, sports matches, traditional stocks, etc. If those data are not stored on blockchain, it is impossible to get them and proceed as a condition in a contract.
Let’s assume that some company wants to create contract which will be used for sports bets. If somebody bet wrong, smart contracts take assets and gives to the winner. How smart contract decides who wins? By using external data from sports results.
Hybrid smart contract
Easily said, hybrid smart contract is connecting on-chain data with off-chain by using decentralized oracle network. It executes real world data with decentralized ones.
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How it works?
Before jumping into concrete scheme of chainlink working, it is worth to mention “The Oracles Problems” which are needed To be solved:
- Blockchians themselves can not access off-chain data,
- Using centralized oracles decrease the advantage of decentrality, what causes security gaps.
Chainlink solves all of this problems, it will be described further.
Oracle is the middleman of blockchain between real world data and decentralized network. Oracle can not appear as one block, because it causes single point of failure.
Chainlink solves this by making something like decentralized ecosystem with real world data. It is maintained by proceeding centralized data into blockchain, then cooperating with blockchain, where smart contract is deployed.
It also works reverted way, basing on result of smart contract execution, decentralized data are going thorough chainlink network and then cause real world events.
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Conclusion
Smart contracts are so valuable in todays web3 world, making it scalable with real world data can help implement amazing Dapps, platforms, etc.
Chainlink was created to handle such a problem, and allow to improve web3 world.
Chainlink repo:
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