Nihatcan Yanik Ayse Karaman

Hathor, a layer-1 blockchain, introduces Nano Contracts, a smart contract platform with built-in MEV and front-running protection.

The introduction of decentralized applications (DApps) opened up new possibilities in the blockchain and crypto space with expanded use cases. However, despite the immense potential to improve industries like decentralized finance (DeFi), several significant challenges complicate the development process and hinder widespread adoption.

Technical complexity is a major barrier. Developers often grapple with the steep learning curve and technical expertise required to create and deploy smart contracts, the backbone of DApps, driving up development costs, delaying timelines and deterring innovation.

Scalability further complicates the equation. Most platforms are ill-equipped to handle high traffic, bottlenecking growth for Web3 and DeFi applications. According to recent reports, the current smart contract infrastructure is not capable of handling even 10% of the global internet traffic.

Apart from these, security risks remain a critical issue, with bugs and vulnerabilities in smart contracts not-so-seldom leading to exploits and substantial losses. The stakes are clear: For blockchain to reach its full potential, its tools must become simpler, more secure and better suited to scale with demand.

Smart contracts simplified

Hathor Network is a layer-1 blockchain that is designed to be scalable and user-friendly. With its hybrid architecture that combines blockchain with directed acyclic graph (DAG), the protocol provides high scalability, security and low and predictable fees. In response to these pressing challenges, Hathor announced a protocol revamp that aims to redefine DApp and smart contract development.

Nano Contracts, a smart contract platform, is central to this revamp. The new platform is an accessible, secure tool that empowers blockchain developers. The introduction of Nano Contracts marks a new era that opens the doors of DeFi to Hathor, which was previously focused on real-world asset (RWA) tokenization.

Source: Hathor

Nano Contracts simplifies smart contract development by using Python, a widely accessible programming language, reducing technical barriers and coding risks. Built on Hathor’s scalable infrastructure, it handles high transaction volumes with stable performance and offers flexible fee payment options, enabling users to pay with various tokens. Additionally, its unique measures prevent manipulative practices like front-running and miner extractable value (MEV) by executing transactions in a pseudo-random order, ensuring fairness for all users.

“Our vision is to empower traders in the DeFi ecosystem by providing technology that maximizes returns and protects against MEV and front-running,” says Yan Martins, CEO and co-founder of Hathor Labs. “With our innovations, we aim to enable more complex financial operations through Intents, giving users both security and advanced functionality for seamless trading experiences.”

Testing innovation and driving growth plans

Hathor’s mainnet has been live for over four years, and for 2025, the project plans full mainnet deployment to unleash the technology’s full potential. Nano Contracts kicked off with a testnet where foundational blueprints and decentralized exchange (DEX) will be tested. During testnet, developers can create their own solutions to grow a diverse ecosystem of decentralized apps (DApps).

In an effort to involve the community in testing its new features, Hathor is introducing an Incentivized Testnet Campaign. Participants can engage with the updated protocol and Nano Contracts, providing valuable feedback while receiving rewards. As for projects, Hathor has unveiled a Grants Program aimed at funding new projects within its ecosystem. Complementing this initiative, the network is launching a Global Hackathon to attract talent from around the world to build on its updated platform.

The introduction of Nano Contracts addresses the longstanding challenges of technical complexity, scalability and security in the smart contract space. By simplifying development, improving security and enhancing scalability, Nano Contracts serve as a tool to actualize the potential of DeFi.

In the future, an EVM bridge will be integrated into Nano Contracts, enhancing its interoperability. MetaMask integration and intents are also on the horizon, with plans to introduce completely feeless transactions.

Hathor is committed to fostering a developer-friendly environment that supports the development of complex applications. With Nano Contracts, the network paves the way for a future where blockchain technology is truly accessible and impactful.