What is Aeternity (AE) & Aeon – Blockchain Technology
There’s a new platform for decentralized apps called Aeternity. It was launched in 2017. Its currency is Aeon (AE). Scalability is the main focus of this platform. It moves smart contracts off the blockchain and operates them in private state channels. Aeternity uses a decentralized oracle machine to find outside data for smart contracts. This platform relies on prediction markets for verification.
Solving the Scaling Problem
There are three ways to correct scaling issues.
- Change the Consensus Mechanism to Increase Throughput – NEO has taken this approach. By changing the consensus mechanism, the blockchain is able to process more transactions per second.
- Sharding Increases Throughput – Zilliqa has implemented sharding. Ethereum is considering this option. This approach divides the workload into groups of nodes.
- Move Smart Contracts off the Blockchain – This is the approach Aeternity is taking. Other platforms are considered this including Ethereum.
State Channels is an Innovative Solution to Scaling
In a smart contract, communications between parties are run through state channels. Since the contract is off-chain, it doesn’t have to pay the network each time it calculates. This increases efficiency and privacy.
If there is a disagreement in the contract, it relies on the blockchain for adjudication. The contract remains private because the blockchain doesn’t need to know the contents of the contract to make a judgment. This arrangement is a blind one that is impartial. The blockchain’s behavior is predictable, and the results are final. The accounts are settled on the blockchain, and the contract is closed.
This is a definitive solution to the scaling problem since off-chain processing increases throughput by several orders of magnitude. Only the final settlement requires processing from the blockchain.
Outside Data is Purified
Aeternity plans to use decentralized oracles to stabilize incoming data. To counteract sabotage, Aeternity allows users to bet on the honesty and accuracy of the data through a prediction market.
The network is based on Proof of Work (consensus) and Proof of Stake (controls how the Aeternity ecosystem runs).
Decentralized Apps – Aepps
The Aeternity Currency – Aeon (AE)
Aeon (AE) is the currency for the Aeternity platform. It was issued in 2017 as an ERC-20 token on Ethereum. It will exchange for native coins when Aeternity launches its mainnet. Users pay system fees and contract awards with Aeon. This currency is trading on Bittrex and Hitbtc. It can be stored in most digital wallets that support ERC-20.
The Team at Aeternity
● Yanislav Malahov – Founder of Aeternity
● Marion Vogel – Director
● Nikola Stojanow – CBDO
● Emin Mahrt – COO