Chainlink 2.0 Whitepaper Proposes Hybrid Smart Contracts

Chainlink today enjoys a dominant position in the solutions related to the decentralized oracle. The company released its original white paper around 3 years back and offers many solutions in a wide variety of domains, including the likes of decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and insurance. Taking the game further, now the Chainlink has released its second white paper, dubbed Chainlink 2.0 Whitepaper. This recent announcement has helped the Chainlink price prediction to surge even higher.

The vision document presents in detail the company’s future ambitions, specifically focused on creating the network of decentralized oracle solutions that will enable the creation of a decentralized metalayer. This metalayer will be instrumental in enhancing the smart contracts with off-chain computations that are secure and confidential while at the same time highly scalable in nature. This will be in addition to the external data that is already available on the Chainlink.

The new whitepaper’s significant aspect is the hybrid concept that the company is conceptualizing for its future smart contracts. As the name suggests, this hybrid approach will provide the best of both worlds – security of the blockchain network and scalability of the off-chain system. The new off-chain layer will rely on the blockchain for providing secure and tempered proof operations, and all this will be done with the feature-rich and connected capability of the off-chain systems. This is expected to serve a wide variety of customers and clients by providing a novel and rich user experience through the range of new applications.

The 2.0 whitepaper of the Chainlink proposes decentralized oracle networks (DONs) that can perform multiple tasks in an interoperable manner. The network can transfer the data bidirectionally and do the computations off-chain using a variety of consensus protocols. To keep the date up to date, DONs have the sync function, and for dispute settlements, features like enforcing and arbitrating are present.

With the specific focus on confidentiality and scalability, DONs are touted to be a game-changer for the entire blockchain domain. In terms of the significant features, the hybrid DONs will offer hybrid smart contracts and enhanced data feeds and VRF, Chainlink Keepers, Chainlink Fair Sequencing Services (FSS), and Chainlink decentralized identity. In addition, the concept of super-linear staking has also been introduced by the new white paper, which mandates that the resources of the attacker must be greater than the combined security deposit of the nodes of the decentralized oracle network to proceed further.

It’s very interesting to analyze the concept proposed by Chainlink in its new whitepaper. The kind of functionalities that the organization is proposing is unique and can easily transform the scenario on several aspects. Specifically, in the segment of DeFi, NFTs, and staking, this can bring a sea change in how existing solutions work.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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