Hybrid Smart Contract Architecture

Chainlink 2.0 outlines a framework for multiple interoperating Decentralized Oracle Networks (DONs), where each DON consists of a collection of nodes that can transfer data bidirectionally and perform trust-minimized off-chain computations.

In a similar manner to layer-2 technology, DONs anchor to existing blockchains and periodically sync data outputs and state changes computed off-chain, while establishing guardrails to enforce correct Oracle reports. Chainlink's new abstraction layer enables off-chain computation in addition to data delivery.

A DON performs every smart contract function that a blockchain alone cannot (due to limitations regarding cost, speed, privacy or technology), enabling greater confidentiality, randomness and scalability for hybrid smart contracts.

Hybrid smart contracts have the flexibility to be computed on-chain to the degree necessary as well as off-chain, in order to maintain privacy, reduce costs and increase scalability.

Many experts believe hybrid smart contracts are much more feature-rich and have the trust minimization they need while having all the features centralized applications have.

As such, hybrid smart contracts represent a huge milestone in the journey toward large-scale blockchain adoption.