ContractNet is a public, permissionless, turing complete blockchain specializing in IoT management. Find out how it works today in our review.
What Is ContractNet?
ContractNet lies at the intersection of blockchain, internet of things (IoT), and smart contracts. It’s a turing complete blockchain designed to facilitate the implementation of smart contracts for IoT purposes. The network is also specifically optimized for lower memory devices – including many smart devices.
External IoT devices will interface directly with the ContractNet network – or with oracles that act as intermediaries – to securely exchange data with smart contracts on the blockchain.
The end result is a platform where entrepreneurs can host their businesses while using the CNET coin as the medium of exchange.
The long-term goal of ContractNet is to become the global exchange for IoT data. It aims to be the preferred solution for the future storage, managing, and transacting of IoT data from smart devices.
How Does ContractNet Work?
ContractNet was originally built as a fork from Ubiq and Ethereum. This fork provided the foundations for the platform.
ContractNet’s blockchain is purpose-built for one specific purpose: the storage and sharing of IoT data. To accomplish that goal, ContractNet will combine a number of decentralized and centralized technologies while providing developers who want to operate in the area with special tools.
ContractNet will have its own “Partner Network” consisting of these developers. Developers will create smart contracts and oracles for the network.
Obviously, there are other IoT blockchain technologies. ContractNet addresses this fact in its whitepaper. ContractNet differentiates itself from the competition through the creation of a hybrid system that combines the trust and immutability of blockchain with the practical nature of an off-chain storage later.
This hybrid system is managed through a “virtual chain” and specifically designed oracles. The end result is a solution that’s 1,000 to 8,000 times cheaper than traditional blockchain technology. It’s significantly more efficient to store data on ContractNet’s off-chain storage solution instead of on the blockchain.
ContractNet also differentiates itself from other IoT blockchains by introducing technology that avoids the pitfalls of coding errors in smart contracts, helping to protect smart contracts from malicious attacks as well as problems with confidentiality and integrity of data.
Finally, ContractNet plans to share all IP and data through a strictly controlled system, including access control permissions on the blockchain.
What Problems Does ContractNet Seek To Solve?
There are already a number of companies seeking to introduce blockchain technology to the world of IoT. What makes ContractNet unique? What types of problems does the network seek to solve? Here are some of the problems mentioned in the ContractNet whitepaper:
- IoT technology is diverse and segmented by use case. There’s an intimidating number of devices, and the number of smart devices is growing every year. By 2020, it’s estimated that there will be between 26 and 100 billion connected devices.
- The vendor ecosystem is complex and fragmented.
- Security is important, but technologies and strategies are still emerging to deal with it. We don’t have a full-fledged security protocol to manage the complex IoT ecosystem.
- IoT standards and interoperability will take a long time to solidify, and no unified standard has emerged.
- IoT widens the potential attack surfaces, making platforms vulnerable to hacking, spying, and invasion of privacy. As the number of IoT devices continues to grow, the number of potential targets inevitably increases.
- Tech vendors often offer complicated integrated solutions, while customers are more interested in specific answers to specific problems.
ContractNet believes its technical solution solves all of these problems.
ContractNet solves the problems above with the following features:
- IoT device authentication
- Prevention of tampering
- Data integrity
- Storage of and access to large data repositories
- System interactions, interoperability, and standards, including developing oracles for the most-used sensors and other devices in these industries
- Fail-safe mechanisms
- Tracking of data ownership and the management of access to physical data among interested parties
ContractNet aims to provide the following benefits:
- Offer a platform that is specifically optimized for IoT, meeting the ongoing and growing requirements for connection, authentication, and security
- A hub of authentication plugins, including industry standards for IoT
- Developers will be able to access the tools they need to create their own applications
- A ContractNet partner network made up of strategic industry and developer consortiums to collaborate and develop applications and technologies
How Do CNET Tokens Work?
CNET tokens are a medium of exchange on the ContractNet platform. They also allow for monetization options among participants. Some of the key features of CNET tokens include:
- Miners can earn CNET in exchange for devoting computational power to the proof of work (PoW) consensus mechanism underlying the ContractNet blockchain
- Miners can earn more CNET tokens by providing storage space to ContractNet’s off-chain storage solution, allowing their computers to function as an off-chain data storage solution for IoT data
- IoT device owners can earn CNET tokens by selling streams of data to developers or other users
- Developers have access to an open source, fully optimized platform where they can develop and monetize their own decentralized apps, with DApps providing physical input into the blockchain
- Developers can create new oracles and sell oracles on the Oracle Hub, creating an online marketplace where users can buy and sell oracles in exchange for CNET tokens
- ContractNet will take a commission from every transaction on its blockchain
CNET coins will be minted through mining at a rate of 8 per block. The smallest CNET unit will be called IoTFS – similar to how the smallest Ethereum unit is called wei. Both Ethereum and CNET are also divisible to 18 blocks.
There will be a fixed supply of 23 million CNETs.
ContractNet Use Cases
Why do we need a blockchain specifically for IoT devices and smart contracts? Some of the specific uses outlined on the ContractNet website include:
- Token contracts
- Financial contracts
- Identity systems
- Smart contracts for decentralized data feeds and sensors
- Decentralized apps
- Smart living environments
- Smart buildings and architecture
- Supply chain
- Auto insurance
- Energy sector
- Emerging technologies and more
As you can see, the use cases start from relatively basic use cases – like token contracts, financial contracts, and authorization systems – and scale up to smart buildings and healthcare initiatives. IoT is a rapidly growing industry, and ContractNet aims to be the backbone of IoT-based smart contracts.
Who’s Behind ContractNet?
ContractNet is led by Lanon Wee Hon Loong (CEO), who previously served as Managing Director for Helios Media Design Pte Ltd and HeightZero Pte Ltd.
Other listed members of the team include Amie Lin (Marketing Head), who previously served as CEO of Helios Media Design and Height Zero, Darren Wong (Finance Head), Lee Lilun (Business Head and CTO), and Ravi Teja (Community Manager).
ContractNet is headquartered in Hong Kong.
The ContractNet CNET ICO Conclusion
ContractNet aims to position itself at the intersection of blockchain, internet of things (IoT), and smart contracts. The goal is to create a network that can efficiently manage smart device data. ContractNet will use smart contracts to sell smart device data and store data, for example.
To learn more about ContractNet, visit online today at ContractNet.com.