The awareness of blockchain technology has spread across borders. Now, everyone is quite familiar with its basic functioning and knows the difference between a database and a blockchain. This shows that this booming technology has come mainstream and has gained the trust of many.
If you are in the blockchain industry, then you might be aware of smart contracts. These contracts' ultimate purpose is to enable automation in an enterprise. It self-executes a specific activity once the pre-programmed rules get fulfilled.
Smart contracts help developers create decentralized applications on a blockchain. Moreover, it does not depend on any middlemen. Creating such powerful contracts is doable with the help of a smart contract development services providing firm.
Hybrid Smart Contracts
Later, developers started to explore smart contracts more. That is when hybrid smart contracts come into play.
Hybrid smart contracts combine on-chain and off-chain data using blockchain and Chainlink Oracle. This Oracle software enables interaction between the blockchain and the real world.
This potent combination of on-chain oracle and off-chain code has enhanced the functionality of DApps. Let me explain the five ways the blockchain industry can employ hybrid smart contracts.
- Weather Analysis
Improper or delayed insurance settlements are a common problem faced by farmers. But with Oracle, parametric contracts can be written to help farmers receive instant insurance payments during bad weather conditions. Thus, a farmer can avoid risks simply by using their smartphones.
- Smart Agriculture
Hybrid smart contracts encourage fair farming practices by incentivizing farmers who adopt eco-friendly agricultural techniques. For that, they depend on the chainlink oracle for getting satellite imagery. The higher the tree cover, the more will be the rewards.
Blockchain games and NFTs can maintain their trustworthiness using hybrid smart contracts. In games like Axie Infinity, random numbers will be generated and are supported by the Verifiable Randomness Function. Finally, it ensures that the end results in the blockchain are fair and random.
- Dynamic NFTs
NFTs are a big hit in the current blockchain market. The artist community has taken over the NFT space. However, the first generation of NFTs is static and cannot be altered.
Hybrid smart contracts help to induce dynamic nature into NFTs. So, automatic adjustments can be made when some movements occur in the real world.
Smart contracts are the foundation of the decentralized finance industry. Recently, DeFi apps enable users to buy, sell, borrow and lend money in real-time using hybrid smart contracts. Thanks to hybrid smart contracts.
A simple plug-in from an existing hybrid smart contract infrastructure is enough to create a reliable DeFi for the customers.
Ultimately, hybrid contracts are more prevalent in the tech industry, and their adoption rate has peaked at the charts.