5 Ways Hybrid Smart Contract Are Changing the Blockchain Industry to make which can give amazing result in this new tech world

First analogy of smart contact: the dish tower

You can find this analogy in full on the following site, and I thank the authors for their clarity. I will only take part of it.

To solve this problem, the father has an idea. He gives each of the brothers and sisters a different puck color. Then he builds a long, indestructible transparent tube, which he fixes in the floor of the house to accommodate these pucks with each round of dishes (image). To avoid cheating, access to the tube is only possible with at least the majority of siblings present. Indeed a cover on the top is closed by different locks each of which has a key. He then recalls the following 3 rules:

Unfortunately this principle works well if there is honesty in the house. But if 2 or 3 brothers are one day in bad faith, then the puck will not be validated! To considerably reduce this risk we reproduce this tube in a sibling of 10,000 siblings. So if I want to block the truth, it requires bribing half of the siblings at the same time, which is pretty complicated.

Physically, with a tube, the consultation and the addition of pucks in this tube would be problematic: people would jostle each other and could not access the tube, not to mention the presence of thousands of locks … This difficulty can be circumvented by digital technology and Internet by dematerializing the tube; thus giving access to thousands of people at the same time, instantly and anywhere in the world thanks to the network without hindrance.

To understand how dematerialization can make the truth of the tube indestructible, we suggested that visitors to the techno café take a picture of the installation and publish it under the hashtag #blockchainvaisselle: if we wanted to destroy the tube, we could not erase it. phones. This truth will therefore subsist digitally across hundreds of digital devices.

To understand what smart contracts are, we must first understand the computer technology that is underlying and consubstantial with them: the blockchain. I presented this new conference with Samir Saïdani, researcher, who devoted a first part to blockchain Hybrid Smart Contracts techno, on which the smart contract is based.

I offer you two scenarios to fully understand the subject. These two scenarios are not mine, but they are so telling that you should get the gist of it.

Smart Contract Scenario

Léo, Jules, Marie and Elsa are 4 brothers and sisters living in the same house. As in many other families, the chore of washing up, imposed by the parents, is a sensitive subject and prone to many discords. Between the one who claims to have done his chore more often, the one who forgot his turn, and the last who claims to have worked more two weeks ago, the puzzle is endless; trust in each other gradually disappears. little. So the dilemma often ends with the authoritative intervention of parents, who have the last word.

To solve this problem, the father has an idea. He gives each of the brothers and sisters a different puck color. Then he builds a long, indestructible transparent tube, which he fixes in the floor of the house to accommodate these pucks with each round of dishes (image). To avoid cheating, access to the tube is only possible with at least the majority of siblings present. Indeed a cover on the top is closed by different locks each of which has a key. He then recalls the following 3 rules:

You have to take turns doing the dishes”

 “The other siblings must then validate that the chore has been completed by opening the lid together with their respective keys, which causes the colored puck to fall inside the tube. The majority of the keys are enough to knock down the puck.

So everyone can check the correct completion of the tasks or know whose next turn is by taking a look at the tube. It is impossible here to tamper with the tube by trying to come in any way to retrieve a puck that has already fallen inside. Tamper-proof and indestructible, one could say of this tube that it is in a way the tube of truth, accepted by the consensus.

The current system: centralization

The current system of contracts in the broad sense, but also to a large extent in IT, is based on the centralization of data. Thus, a bank centralizes contracts that allow you to exchange currency, the land registry service centralizes title deeds and ownership is transferred through a notary (not systematically, especially in the public domain). More broadly, an insurer that provides you with a “cloud” stores the data that you can possibly transmit to it on its own computer servers; again, it is the insurer who centralizes information. The court also centralizes the cases brought there by litigants, etc. In short, almost everything is centralized.

A model for the future: decentralization and automatic execution

A relevant example of the decentralization of data is what is called “peer-to-peer” or peer-to-peer. This method of exchanging data has long been criticized because the data that was exchanged in this way was, in part, protected by copyright (music, films, etc.). But today, using peer-to-peer does not make you a potential hacker as soon as you exchange authorized data: GNU / Linux operating systems (competitors of Windows) are downloadable in peer-to-peer mode using data transmission protocols like BitTorrent. To put it simply, everyone has the same information on their computer and this information is freely accessible to anyone who wants to have it. The software retrieves the desired data by connecting, not to a single computer which centralizes the data, but to all the computers on which the desired data is stored. This system allows large amounts of data to be exchanged without saturating a central server with frantic download requests.

In the contracts, we can imagine tomorrow that a farmer, who is insured against drought (this is topical!), Will be able to be compensated automatically.

Automatically consult various indisputable weather websites and compare the data to verify that on the plots owned by the insured farmer, there was indeed a shortage of water for 30 days. If the rule is verified, the farmer is compensated 30 days later, without declaration of damage or human intervention. The contract will no longer even be stored with an insurer; it will be a “blockchain on the internet” whose execution will be ensured by computer and confidentially by software responsible for verifying that the conditions are met.

Categories: Digital Art

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