Ever wonder what Hybrid Smart Contract is? What goes on your mind when you hear about it?
A hybrid is anything that combines two concepts, and a smart contract is a digital, automated contract. Hybrid smart contracts are therefore virtual contracts; however, they differ from regular contracts. In that case, hybrid smart contracts are powered by two networks: the blockchain network and the Decentralized Oracle Network (DON).
A hybrid smart contract links Blockchain (on-chain) code with off-chain data and computation. It maintains the immutable and tamper-proof characteristics of a blockchain. It employs a decentralized oracle network (DON), allowing it to create agreements utilizing off-chain data.
Why Are Hybrid Smart Contracts Appropriate?
Hybrid smart contracts have already or may soon have an impact on a number of significant industries, including:
Identifying information can be automatically confirmed while protecting privacy. DONs can carry out calculations validating a user’s personal information without disclosing it to the public or counterparty or keeping it in an external system. Smart contracts can specify the necessary personal information and take action upon obtaining it.
Two-sided prediction markets that are based on pre-specified events can be used to facilitate parametric insurance. Smart contracts can specify the processes for premiums and claims. While DONs can link the contract to external data sources for quoting and arbitrating claims. DONs can also calculate risks, retrieve complicated risk assessment outputs and secretly validate IDs.
Gaming platforms automate the distribution of prizes and grant users full ownership of in-game items via NFTs. It also offers unambiguous evidence that every player has an equal chance of winning. DONs can provide tamper-proof randomness to enable provably unbiased games and fair prize distributions. Smart contracts can establish models for gameplay and reward distribution. DONs allow gaming dApps to handle game operations off-chain for improved speed and connect real-world data streams like IoT sensor reading for augmented reality.
Multi-party trade agreements that use verifiable data to automate operations across several systems, digitize product lines, and operate on a common ledger. Using a combination of privacy-preserving computations and external data feeds from IoT networks, web servers, other blockchains, and enterprise backends. DONs can track shipments, monitor quality control, verify customer identities, and trigger settlement payments. Smart contracts can outline the various obligations, payment terms, and penalties.
Open financial markets are censorship-proof, transparent, and available everywhere. DONs can price goods and settle markets using external data. They carry out computations for optional features like transaction concealment, KYC verification, fair transaction ordering, and high-speed off-chain processing. Smart contracts can specify the terms of engagement for both the buyers and sellers.
Distributed communities that manage pooled assets and shared infrastructure securely and fairly. DONs can offer external data and calculations to trigger profit sharing, deduct shared fees, validate identities to minimize Sybil attacks, verify membership commitments, or even automate decision-making. Smart contracts can design the complete governance architecture.
As hybrid smart contract development is interlinked with blockchain, it possesses larger support to any business and other industries. It performs significantly better than any other contract since it is both a smart contract and a DON.
Not only in regular industries but smart contracts have also created their own space in unexpected regions like agriculture too.
Hybrid Smart Contracts For Environmental Sustainability & Regeneration
Regenerative farming methods are advantageous for preserving natural ecosystems. It is a comprehensive method of using the land. It includes growing native veggies and superfood plants. Hybrid smart contracts can assist it in making connections by coordinating efficient and trustworthy resource distribution through blockchain-based automation and transparency. They are computer programs that may safely link to non-blockchain data and systems while operating on blockchain networks. They use external data and computation to verify real-world events, initiate payments and penalties, and record transactions in a tamper-proof way. To verify, they are utilizing the decentralized computing architecture and ledger of blockchains.
Are you daunting your heads with repetitive financial transactions that can be automated? Consult with the leading smart contract development company to explore automation opportunities in a dispute-free manner.
Chainlink announces that Green World Campaign (GWC) has received a Chainlink Community Grant. With the support of a hybrid smart contract application, reward distribution will happen in the form of regenerative carbon assets using satellite data. Hybrid smart contracts counteract climate change’s consequences. Protectors will be given blockchain-tokenized “regenerative carbon” assets that represent Green World Credits. After that, they can sell that to organizations and use it in well-publicized Kickstarter initiatives for natural restoration.
The Green World Campaign aims to mobilize a worldwide movement to improve degraded land via reforestation and agroecology. It improves the health of rural people, refills depleted soil, restores biodiversity, as well as reduces greenhouse gas emissions through “carbon drawdown.” Their target is to multiply the wide range of the “Regenerative Society” model’s award-winning programs. It includes planting billions of trees, encouraging regenerative agriculture, teaching children and farmers about the environment, and improving the living conditions of the underprivileged communities that are most affected by climate change.
Green World Campaign employs a hybrid smart contract application called Automated Incentives for Regenerative Stewardship (AIRS) to honor stewards of regenerative agriculture. It is designed to fulfill the needs of local communities. It offers cryptocurrencies to stakeholders that can be easily converted into fiat currency or digital assets. Chainlink oracles directly start the payments. These are charged with acquiring ground-truthing and satellite data and processing it inside trusted-execution settings.
What’s the next step in agriculture?
The emergence of hybrid smart contracts demonstrates that blockchain technology is much more than just decentralized money. A new era of hybrid smart contracts can provide new categories of incentives for sustainable human consumption. We must be conscious that the environmental effect of this business will be determined by much more than any one project’s consensus process as the discussion over climate change intensifies. Any one project’s consensus process will determine the environmental effect of this business, and we must be clear as the discussion over climate change intensifies.
Exciting Futuristic Applications Of Hybrid Smart Contracts
In this web 3.0 era, how will it be when hybrid smart contracts act as the key component?
Today, everything we do is based on a contract, promise, or agreement. The things we buy, the marriage we do, everything falls under the contract/promise. It might be either breakable or unbreakable. But we need it to be unbreakable.
And now, we have a perfect way to fix this. i.e., Hybrid smart contracts in web 3.0.
Hybrid smart contracts are the trustworthy and tamper-proof data demonstrating contracts that are feasible in web3.0. It is immutable and self-executed, and everyone can see the terms of the agreement. Typically done with the Decentralized blockchain and Decentralized Oracle Network. You can find more about the hybrid smart contract development if those realms sound like I’m casting a spell.
Next Stop: Web 3.0
Web 3.0 is a current generation of web that is driven by decentralized services rather than the centralized ones we are accustomed to. In web 3.0, users can engage themselves with interactive, transparent, dynamic websites powered by decentralized services.
In the case of Robinhood, the issue of exchange being wholly owned and run by a single organization was intended to be solved with Robinhood. Retail investors would have saved hundreds of millions of dollars if this had occurred. But surprise! We already have decentralized exchanges that resemble equities on the blockchain and can be traded.
Hybrid smart contracts in web 3.0 offer many advantages, including execution speed, uptime, and robust security. With all these enormous benefits, Hybrid smart contracts will rule the future world of blockchain development.
If you are interested in starting a project with Hybrid smart contracts, feel free to reach a Smart contract development company.