Hybrid smart contracts

Smart contracts are deployed to blockchain, it is a fact. However, how to make a smart contract which runs on some terms which are not…

Kacper Hernacki

Dec 9, 2022 — 2 min read

Smart contracts are deployed to blockchain, it is a fact. However, how to make a smart contract which runs on some terms which are not existing on blockchain, like:

sport events,
- market,
- live news,
- etc.?

Agenda:

what is it?
why is it needed?
how it works?
conclusion.

What is a hybrid smart contract?

“Hybrid smart contracts are technically blockchain contracts only, but unlike traditional smart contracts, it is powered by two decentralized networks- one is Blockchain, and the other is Decentralized Oracle Network (DON).”

You could understand from my previous material, how chainlink works and connects the on chain data with an off chain.

But why is it needed and for what purposes?

Why is it needed?

Smart contracts overcome the problem of centralized standard banking problems and gives more freedom to the people.

The same result was wanted for more areas of life, where it was possible to pay in crypto.

“The data that defines the conditions of a smart contract traditionally comes from the Blockchain only.”

It means exactly, that data for conditions of executing a smart contracts had to be passed from blockchain directly…

but what if it is needed to pass other data?

“The introduction of Oracles into the crypto ecosystem resolved the problem.”

Oracle can translate off chain data and pass it to smart contact, so that real life world conditions can be proceeded in smart contracts.

Isn’t it awesome?

You can write a smart contract for some bet, for example you including some match result, deposit some assets from both sides…

And without a middleman, contract will transfer assets to the winner, just after getting notified about the result of a play.

It is just a quick example, but usage is so scalable and needed.

How it works?

Hybrid smart contract includes:

smart contract,
and access to decentralized Oracle network needed data.

Think about Oracle network as a decentralized ledger of real life data, which can be accessed between the layers of various blockchains…

Smart contract knows which data are passed to conditions, and in which circumstances are execute the script.

Conclusion

Hybrid smart contracts are the game changer on the web3 development, it gives a lot of opportunities to include in conditions of executing the written code. Providing an access to these data is an another piece of cake, which has to be made in the best way.