Why does GenLayer exist?

Ever heard of the smart contract to vending machine analogy? We all know how vending machines work: you put in your coin, and it gives you a specific item it contains, usually snacks. That’s exactly how smart contracts on traditional blockchains work. When a condition is met (insert a coin), the smart contract executes a certain set of rules (give out a snack). The vending machine, compared to the smart contract, can only do a very limited job and doesn’t know much about the world outside the machine. It doesn’t know if the price of an item has changed in the real world, who is using the machine or if it’s raining outside.

Now imagine you had an ultra-high-tech vending machine with all the fancy stuff integrated. You can:

Now imagine you had an ultra-high-tech vending machine with all the fancy stuff integrated. You can:
Check the latest news of the day or the weather forecast,
Solve a complex math problem for you and
The machine autonomously adapts the price of the snacks without any human intervention.

Well, this is what GenLayer’s Intelligent Contracts are compared to classic smart contracts. GenLayer upgrades the classic “smart” vending machine to a truly “Intelligent” vending machine.

Why Has No One Ever Upgraded the Vending Machine Before?

That’s a good question, and there’s a reason for it, which we might be able to answer! The reason is simple: until now, it hasn't been possible in decentralized systems. AI models (and GenLayer) were needed to do that. Here is why:

The real world is not black and white - things change. One day the weather is sunny, the next it’s rainy and sometimes it’s just cloudy and grey. Even your hair doesn't look the same every day, even if you use the same amount of hair gel! These unpredictable variations are called non-deterministic inputs.

Traditional smart contracts struggle because they can only work with fixed, predictable data. Compared to a “smart” vending machine that always gives the same pre-set output. GenLayer’s Intelligent Contracts, on the other hand, can handle non-deterministic inputs. They can adapt to changes, making them far more flexible and powerful than classic smart contracts. This means developers can use blockchain technology in ways that weren’t possible before.

For example, GenLayer can:

Automatically adjust insurance payouts based on real-time weather conditions,
Update loan interest rates according to global economic factors,
Make decisions based on fresh news or data, like choosing the best sports bets or business moves …. on the blockchain!

In summary, GenLayer exists because traditional smart contracts are static. They always give you the same output for the same input. GenLayer turns them into intelligent contracts that can react to the world in real time and make decisions based on dynamic information — just like that ultra-smart vending machine that can do so much more than just give you a snack.‍

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Join us on our mission!

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