# HAPI SC

HAPI embeds a set of smart contracts that in essence operate on the grounds of data provisioned to them via oracles. Generally, smart contracts employ a slew of predetermined lines of code that execute a string of functionalities and in the case of HAPI, one of the SC incumbent duties is to inform a project, CEX, or DEX about the likelihood of malevolence. HAPI SC operates adjacently to, for instance, DeFi smart contract. Every time a potentially hazardous or fraudulent transaction takes place, HAPI Protocol is able to detect it and write it in the SC, placing it in the “risky” category and preventing further unlawful activity from this address by essentially blacklisting and informing the network of HAPI Protocol linked entities that the address in question can, in fact, pose a substantial risk.

In a similar fashion, by extracting or querying data from various sources (including database provisioned via Data Providers), HAPI can effectively preclude a foreseeable danger from transpiring. 

It should be noted that HAPI is several SCs working conjointly. Each SC is assigned a particular role. As we discussed above, one of the SC will essentially be the storage of data on addresses that also bears a grunt of categorization of the same addresses according to the nature of the risk they may pose. The basic set of smart contracts in HAPI Protocol:

**Core Smart Contract** - address data storage, request/report handling, oracle interaction
; you can see it on [GitHub](https://github.com/HAPIprotocol/hapi-core)

**Token Smart Contract** - utility token for core contract operation and governance
; it's a standard [SPL Token](https://spl.solana.com/token)

**Governance Smart Contract** - endpoint for governance infrastructure for core contract management

Since we have already covered Core Smart Contract functionality to a sufficient degree and its main task of storing and efficiently classifying data according to the binary structure, it is reasonable to cover the remaining two SCs that are essential for the operation of HAPI Protocol.

Token Smart Contract is a standard asset tokenization smart contract that will be separately deployed on each blockchain since every Blockchain has its own a) Language for SC; b) Differences inherent to Blockchain’s infrastructure (consensus algorithm, processing). The integral idea of HAPI however is to establish an interoperable, cross-chain ecosystem that operates blockchain-agnostically. Therefore the bridge functionality is of the utmost importance and will aid in instantiating robust interconnectedness between networks.

Governance Smart Contract essentially represents a governance-specific mechanism that will shoulder all of the related operations within it such as votes delegation, issuing proposals or submitting data in Core Smart Contract, and processing fees imposed when submitting the data.


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