Why Private Smart Contracts are the Future of Finance
Private smart contracts are growing in popularity, especially in DeFi. So, what exactly are private smart contracts, and what benefits do they confer to investors over ordinary smart contracts?
A private smart contract is basically smart contracts whose source code is hidden. Essentially, an outsider has no idea about how the contract is executed.
The concept of private smart contracts has been gaining traction for a while now and for good reason. Private smart contracts have the same advantages that private blockchains give to their users. Among them are as below:
In public smart contracts, everyone can see how the code works. That also means some very smart people with bad intentions can identify weaknesses in the code and exploit them. This has happened many times, and smart contract exploits have led to multi-million-dollar losses many times over. Private smart contracts do not have such problems. That’s because the code is encrypted. This means network users are always guaranteed security in their transactions. This makes private smart contracts perfect for the finance industry, which handles hundreds of billions of dollars daily. It is also the industry that is most vulnerable to smart contract exploits because the incentive is there for such exploits.
2. Private smart contracts protect data privacy
The other big benefit that comes with private smart contracts is data privacy. Unlike in a public smart contract where every transaction is open for all to see, only the parties involved are privy to such data in private smart contracts. This protects all parties involved and makes private smart contracts perfect for financial transactions where unwarranted data exposure can lead to unintended consequences.
3. Private smart contracts execute faster
Transaction speeds are a big bottleneck to blockchain technology adoption. That’s because most industries handle large volumes of data at a go for them to function efficiently. For instance, in finance, centralized networks can easily handle over 100k transactions per second. Most blockchains are yet to get to such scaling levels. However, when using private smart contracts, it is possible for most networks to scale faster since the code can be optimized without fear of attacks.
Last but not least the benefit of private smart contracts is that they are usually geared towards enterprises. This is a big deal as the real end goal for blockchain technology is to be adopted for everyday business. In essence, any chain that uses private smart contracts has better odds of success long-term, than one that uses public smart contracts. Big money is likely to be attracted to private smart contracts, and from an investor perspective, this means a higher potential for gains long term.
Which are the best blockchains that offer private smart contracts?
There are multiple blockchains out there that offer private smart contracts. As such, it is important to apply due diligence when investing in such projects. As a rule of thumb, only invest what you can afford to lose. Also, always make sure to scrutinize all aspects of the project, over and above the fact that it has private smart contracts.
One of the key features to consider when investing is the project’s ecosystem. The ecosystem is an indicator of how well the cryptocurrency is being accepted in the market. The bigger the ecosystem, the higher the odds that you are investing in a cryptocurrency that has a good chance of success long term.
You also need to consider the team behind it. As a rule of thumb, go for one that has a big team that is technically well equipped. This assures you that they have the capacity to implement all their key milestones, over and above the hype that characterizes most cryptocurrencies.
Using these metrics, one of the best private smart contracts cryptocurrencies to consider is Oasis Protocol.
About Oasis Protocol
What Is Oasis Protocol?
The Oasis Network is the first privacy-enabled blockchain platform for open finance. It’s Designed for the next generation of blockchain. It’s a responsible data economy designed for the next generation.
The oasis Network is a proof-of-stake decentralized network. It has two main components: the ParaTime Layer and the consensus layer.
A decentralized set of validator nodes runs the consensus layer. It’s also secure, scalable, and high-throughput.
The ParaTime Layer hosts several parallel runtimes. Each runtime represents a computing environment with a shared state.
Oasis network is the top privacy-enabled and scalable layer one blockchain network to propel web 3. Because of its high throughput and secure architecture, it can power private and scalable DeFi. Oasis protocol revolutionizes Open Finance and expands it beyond traders and early adopters to a mass market.
Its unique privacy features redefine DeFi and create a new digital asset called Tokenized Data. This enables users to take control of the data they generate and earn rewards for staking it with the application. Undoubtedly, it’s creating the first-ever responsible data economy.
Their team is made up of top talent from around the world. Some have backgrounds from Apple, Google, Amazon, Goldman Sachs, UC Berkeley, Carnegie Mellon, Stanford, Harvard, etc. They are all committed to growing and expanding the impact of the Oasis Network.
Oasis has numerous features that help it stand out from the market. Some of these key features include:
- Privacy and scalable DeFi
Oasis network expands DeFi beyond early adopters to the mass market. It allows smart private contracts, tokenized data, and high scalability.
Also, The Oasis Network supports confidential smart contracts. Thus, it enables sensitive data to be used by apps, especially in finance.
- Tokenizing data
Tokenized data enables users to earn rewards by staking their data with apps they want to control. The user can also analyze their most sensitive information depending on their services.
- Parallel Smart Contract Layers
The Oasis Para Time architecture supports fast transaction speed, high scalability, and large workloads. The process allows the Oasis Network to support a rich ecosystem of applications and different use cases.
- Confidentiality and Security
The confidentiality feature unlocks a range of new use cases on the blockchain. It allows personal or sensitive data, such as their social security number, health information, and bank statements, to be used by apps on the Oasis Network. Most Layer 1 networks don’t enable this making it risky to perform similar tasks.
ROSE token is the primary token in the Oasis protocol. Thus, the Oasis Web Wallet is the best way to store and stake your ROSE. It is the native, and settlement token for the Oasis Network. Additionally, it is used for staking and delegating on the Oasis Consensus Layer and smart contract operations that require fees in ParaTime.
The ROSE token is used for transacting fees, staking, and delegation at the Consensus Layer.
There is also the Oasis Browser Extension, a Chrome-based wallet with all the core features of the Oasis Web wallet. It’s compact and easily uses ROSE in Dapps built on the Oasis Network. It enables you to Transfer ROSE to a new wallet effortlessly.
There are different ways you can stake rose tokens. You can participate in community activities, become a validator, or get a rose grant.
The Oasis Web Wallet is the best way to store and stake your ROSE. it contains robust
The Oasis Protocol Foundation
The Oasis Foundation was built to foster a global community around the Oasis ecosystem. It supports its growth and decentralization. The Foundation is a not-for-profit organization and comprises an international team with Europe, Asia, and North American members.
Here are some of its core activities.
- It supports and brings people together to form creative communities.
- Facilitates and funds various community-driven activities. all this is possible through grants, hackathons, and more
- Promotes governance, transparency, and the decentralization of the Oasis Network.
- Drive awareness, educate, and ensure that everyone is informed about ongoing activities, product features, and projects.
Becoming a member
There are different ways to become a member of the oasis protocol. Examples include
- Joining the community channels on Facebook, Telegram, Slack, Twitter, YouTube, LinkedIn, and Instagram.
- Becoming an ambassador
- Joining the university program
- Registering for the newsletter
There are many private smart contract platforms in the market today. This growth is driven by the potential adoption of private smart contracts in the finance industry. One of the best to consider is Oasis Protocol. That said, always remember that all cryptocurrency investments carry risk, and it is best to only invest what you can afford to lose.