Chainlink, Oracle’s widespread decentralized network, released its 2.0 white paper yesterday, sending LINK up 10%. This paper describes hybrid smart contracts and other mechanisms to make link mosaics even more useful and sustainable.
Oracles are third-party tools that collect data outside of a blockchain, since blockchains are by definition an immutable repository of data, but cannot automatically authenticate that data.
Large chain jump
Oracle networks like Chainlink solve this problem by retrieving data from multiple sources with a high degree of reliability to ensure the proper functioning of the network and blockchain application.
And White Paper 2.0 takes these mechanisms even further by enhancing Oracle technology in seven key areas: Smart contracts, scalability, facilitation, enhanced data security and privacy, order fairness, trust minimization and overall crypto-economic security.
My goodness, this is a #chainlink 2.0 white paper brimming with alpha.
Hybrid smart contractsDecentralized metallurgical layerSuperlinear steakFair sequencing servicesAuthenticated data provenanceKnowledge gapTransaction executionMechanismIndirect incentives.
– ChainLinkGod.eth 2.0 (@ChainLinkGod) April 15, 2021
None other than Sergey Nazarov, co-founder of the technology company Smart Contract and Chainlink Labs and creator of Chainlink, spoke today about Modernization 2.0. Nazarov spoke with Andy Pickering of Brave New Coin at the BlockDown 4.0 virtual conference.
After some background, Mr. Nazarov explained why Chainlink launched the 2.0 update. What really attracted me to the blockchain industry was this concept of a smart contract, and the fact that it was smart enough to detect and prove what was happening. And I quickly realized that you need an Oracle for that, that’s right, you need something called an Oracle mechanism.
And in the beginning, we had a centralized oracle mechanism. And then, after many years, we worked on how to decentralize it, and we finally came up with what Chainlink is with Oracle’s mechanism that can provide some decentralized collateral, he added.
I am very grateful to all the major co-authors of the Chainlink 2.0 white paper. Thank you for your deep thoughts and dedication in helping to shape the future of how decentralized oracle networks will redefine our industry through hybrid smart contracts: https://t.co/IJ2dlXEdSu pic.twitter.com/X6XhBThBcb
– Sergey Nazarov (@SergeyNazarov) April 16, 2021
He also stated: And these decentralized backups and tamper-proof guarantees are very important. Because just like the codified and inviolable contract, the guarantees about what happened, which essentially control this codified contract as an intelligent contract in the chain, this evidence and this onset and series of events or calculations, have to meet this very high standard.
What is a hybrid smart contract?
A relatively new term used in the white paper is the concept of a hybrid smart contract. The last, for the uninitiated, is the set of codes and rules that govern the blockchain application or tool and ensure that all conditions are met before any smart transaction or contractual integration takes place.
What makes them hybrids? Here’s Nazarov’s explanation: I think hybrid smart contract thinking is really the original concept, where there was always the assumption that the smart contract knows that when something happens, it has evidence and is able to interact with all systems in the world in a meaningful way that is valid for the real world.
So the smart contract itself is a piece of code running on a blockchain, which, given the nature of blockchains, really means a piece of code that can define terms, he added.
Nazarov also stated: But it cannot know which conditions have been met unless those conditions relate to token generation events, token movement events, private key signatures, or token voting system types.
And I think the hybrid smart contract – the reason we chose that term in the white paper is because we’re trying to define this concept of a smart contract more holistically in terms of what it enables people to do, when they build. And it’s considered a hybrid smart contract, he said.
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