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Nano Contracts

Introduction

A simplified version of Smart Contracts, in which two or more people transfer their funds to a special transaction through Hathor Network, called a Nano Contract, which is set to be resolved later. A contract is simply a set of rules applied to decide the final distribution of the funds, i.e., how many tokens each participant of the contract will receive.

Another important concept is that of Oracles. They are agents that submit pieces of information from the real world (outside the network) into the network. They are useful for implementing Nano Contracts which are settled depending on the outcome of real world events, such as stock prices, game scores or election results.

Is it similar to Ethereum Smart Contracts?

Even though the motivation is the same, we chose for a simpler design. Smart Contracts are a very powerful tool, but this leads to complexity and bugs. Ethereum itself had to be forked to undo the consequences of one such bug (Ethereum vs Ethereum Classic). Moreover, processing Smart Contracts might consume large amounts of computation power. That's why in Ehtereum you have to pay extra fees for processing smart contract transactions (these fees are called gas).

For Hathor, we designed a set of instructions that enables users to create very powerful contracts, without all the complexity that inevitably results in bugs. This simplicity also means that processing a Nano Contract transaction is cheap and does not result in extra fees, following Hathor's philosophy of feeless transactions.

Technical details

More information will be available soon.