Founded in 2017, Aeternity is a new, scalable, cryptocurrency platform that aims to improve cryptocurrencies, in general, by solving some of the most serious problems: scalability and security.
Eliminating inefficiencies in the cryptomarket, increasing scalability of smart contacts and dapps, sharding, and moving contract execution off-chain are just some of the things that make Aeternity stand out from the crowd.
Smart Contacts Scaling – How Aeternity solves this problem
One of the main challenges facing blockchain adoption is the scaling of smart contracts. That said, scalability can be addressed in three ways: by increasing the throughput with a different consensus mechanism, by increasing throughput with sharding, or by moving smart contracts off-chain, an area in which Aeternity is currently innovating.
The first approach, that of increasing the throughput with a different consensus mechanism, aims to increase the number of transactions per second the blockchain is capable of handling; however, this method has its limits.
Increasing the throughput with sharding is a technique that involves separating both transactions and smart contracts requests in shards (groups of nodes). This method is still not ideal since it results only in a partial transaction verification by only a few nodes.
The third and final solution for scaling smart contract is by moving their execution off-chain, which is also Aeternity’s main goal.
State channels – one of the platform’s main breakthroughs
State channels can be considered lines of communication which make it possible to execute smart contracts off-chain. This means that the state channel contracts can operate with greater privacy as well as with increased efficiency.
Adjudication and disagreements
It’s only when the contracting parties reach a standstill or a disagreement appears that the smart contract code gets enforced by the blockchain. Thanks to this method, the contract remains private and the blockchain can settle the score by acting as a private administrative system for smart contracts.
Due to the fact that only the final settlement needs to be processed on-chain, this leads to an increase in throughput levels.
Building functional smart contracts
With future plans for building JS libraries and JSON APIs for web development purposes, Aeternity currently allows developers to create and run smart contracts in the Chalang language. Aeternity does not come with support for stateful programming, meaning that the contracting parties are responsible for maintaining the state of the program.
The platform’s ingenious Proof of Work and Proof of Stake systems
As mentioned before, Aeternity also offers a unique governance system, with consensus being achieved via a hybrid Proof-of-Work (PoW) system and a Proof-of-Stake (PoS) algorithm. This hybrid PoW system encourages the creation of better DRAM processors, but it also paves the way towards an unparalleled decentralization by allowing smartphones to mine.
In regards to the Proof-of-Stake (PoS) system, it’s used for delegating voting by weighing the decision on the amount of tokens the account holds. In simple terms, it means that miners can vote and value-holders can bet in order take decisions together.
Innovating and decentralizing oracles
Last but not least, we have the Oracle which connects real world data with smart contracts basically providing access to data outside the blockchain. This feature allows users to ask questions, then get various answers. Some real-life examples for this could include checking the price for any cryptocurrency, the price of gold, or the weather in any part of the world.
This feature alone is sure to make Aeternity one of the leading crypto platforms in marketing survey business environments and, ultimately, even lead to a significant growth somewhere in the near future.
Bespoke, open source “Aepps” from the first day after the Mainnet launch
The Aeternity team is well aware of the potential the platform has and it’s not surprising that they’re looking to attract as many mobile and web app developers as possible. The Aeternity decentralized applications called “aepps” will be available from day one after the platform’s official Mainnet launch.
AE Token (AE)
Currently ranked 28 in the top 100 Cryptocurrency chart on CoinMarketCap, Aeternity is pretty similar to ETH when it comes to system fees. In short, all system fees and smart contracts are settled in Aeon, since an Aeternity token does not exist just yet.
Roadmap and future plans
Aeternity started its development in the first part of 2017, shortly followed by its Testnet launch and official token sale, backing campaign, and the creation of essential apps. At the current time, Aeternity is undergoing a security audit with its Mainnet launch scheduled before the end of the year.
The people behind the project
Aeternity is associated with one of the biggest names in the crypto industry, that of Yanislav Georgiev Malahov, the founder of Aeternity, also known as the “Godfather of Ethereum.”
More information about all Aeternity team members can be found on the platform’s official website.
Aeternity – a game-changing platform, but is it worth investing in?
All things considered, Aeternity is one of the most innovative and most exciting cryptocurrency platforms to have rolled out in the past years. It’s here with a praiseworthy mission of improving the industry of crypto, and it does so valiantly by moving smart contracts off-chain and by improving scalability by a long margin, as well as by cutting down on those inconvenient price fluctuations usually associated with all cryptocurrencies.
The next best thing for future crypto investors? Time will tell.