Vostok’s approach addresses many of the shortcomings of public-blockchain smart contracts when applied to a private network.
Difference between smart contracts on public and private networks
The blockchain is evolving from payment systems, to enabling the platforms that allow underpin decentralised applications. Charles Hoskinson provides a good explanation: when Ethereum was developing their platform they realised that the transfer of assets has a story behind it, which can consist of different terms and conditions to be fulfilled for transfer to be finished. Consequently, with further technological development blockchain users realised that more than transferring is possible and started to build various useful and even funny decentralised applications. As far as the public blockchain goes the main use cases are:
With the growth of adoption and popularity of public blockchain platforms, enterprise companies understood that blockchain technology could actually be very efficient for some of their business processes. That progress and focus on business needs had an influence on smart contract development as well. Now, given our experience with the corporate customers, we can provide popular use cases in which smart contracts can shine in the private blockchain arena:
- Corporate document flow
- Supply chain business processes
- Secure voting systems
- Clearing of mutual settlements with suppliers
- Leasing and rental equipment
- Creation of derivative financial instruments, backed by tangible or intangible assets (e.g. debt tokenisation)
- Auctions of any type or complexity
- Predictive analytics over blockchain data
As you might imagine, there is a difference between smart contracts for public and private blockchains. On a private blockchain the key differences are:
- Data operated by smart contracts is much more sensitive compared to public networks.
- A common case is that smart contracts should be able to operate with documents and data stored outside of ...
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