VSC Coming To Hive: New Smart Contract Platform

Amazing video. Thanks for sharing this announcement

That sounds like an interesting system. Wouldn't this make the witness block validation more complex? I guess it has to check which nodes are possible for each smart contract type.

Posted Using LeoFinance ^Beta

Summary: In this episode, Task discusses the introduction of a virtual smart contract platform to Hive, which is being led by Vault-Tec. The platform is designed as a Layer 2 solution integrated with Hive but operates as a sidechain, not directly on the Hive blockchain. Task highlights the benefits of not having smart contracts on the base layer of Hive, focusing on security and scalability concerns. The new smart contract platform for Hive will enable the creation of tokens, liquidity pools, decentralized exchanges (DEXs), and various functionalities similar to those on the Ethereum Virtual Machine (EVM). Task emphasizes the importance of this new Virtual Smart Contract (VSC) system for the future of Hive.

Detailed Article:

Task introduces the development of a virtual smart contract platform for Hive under the leadership of Vault-Tec. The platform, known as Virtual Smart Contracts (VSC), is set to be a Layer 2 solution integrated into Hive as a sidechain, leveraging Hive as the settlement layer. VSC aims to address the long-standing need for smart contract capabilities on Hive, offering features like token creation, fungible and non-fungible tokens, OpenSea-like functionalities, liquidity pools, and decentralized exchanges (DEXs).

The discussion shifts to the rationale behind not having smart contracts on the base layer of Hive, citing security and scalability concerns. Task mentions the Ethereum hack from years ago, emphasizing the potential security risks associated with smart contracts directly on the base layer. By keeping smart contracts off the base layer, Hive avoids these security vulnerabilities and potential scalability issues linked with all nodes needing to process every smart contract.

Task explains the process of compressing the blockchain by keeping only essential functionalities like account management, claims, creation systems, reward pools, upvoting, downvoting, and internal exchanges on the base layer. This approach aims to streamline the blockchain, enhance efficiency, and reduce the burden on nodes, contributing to overall network optimization.

The VSC system allows for a distributed node system, enabling nodes to select which smart contracts they run. Task illustrates this with the example of LeoFinance creating a node with specific smart contracts tailored to its needs, without imposing the same smart contracts on all nodes. This node flexibility improves scalability and customization options for different applications.

Furthermore, Task discusses the potential implications of the VSC system, such as the development of a Hive-based DEX that lists tokens created through the VRC-20 protocol. This DEX could facilitate token swapping, possibly including stablecoin trading, and integrate with Hive accounts for seamless user interactions. Task underscores the significance of VSC for the future of Hive, highlighting ongoing efforts by Block Trades and dlux in designing smart contract capabilities tied to the blockchain.

In conclusion, Task anticipates the upcoming rollout of smart contract platforms on Hive in 2023, emphasizing the ongoing progress and developments in smart contract functionalities within the Hive ecosystem. While acknowledging that VSC is still in development and not yet close to release, Task expresses optimism about its potential impact on Hive's evolution towards a more advanced and efficient blockchain platform.

Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.