Cryptocurrency & Blockchain Business

What is Aeternity (AE)?

Aeternity is a platform with the ability to create true decentralized applications. It is presented as an improved alternative to the well-known Ethereum platform, it solves the problems of scalability, improves the security of scripts and makes access to smart contracts more economical.

Aeternity is known as the Aeon or Aecoins platform, a cryptocurrency known to have been one of the most successful ICOs of the past year reaching more than 36.9 million dollars in Ethereum and Bitcoins. Incredible digits considering that the main platform has not yet been released to the market.

Aeternity has gained a lot of popularity in recent months mainly because of the good acceptance of its currency and the expectations it has generated. However, the project hides much more than a successful cryptoactive. Aeternity promises to be one of the Blockchain’s most influential innovations by creating a new chain that improves what we all know today.

Aeternity Blockchain

The developers of Aeternity analyzed the main weaknesses of the current blockchain, that became popular with the appearance of the BTC. First, smart contracts are developed on a difficult platform to analyze, which considerably increases the cost to acquire them. Second, the high commissions to bring blockchain resources to the real world mean that many startups have problems to succeed, in addition to how limited the platforms are to update.

Based on this, Aeternity proposes three solutions that will significantly improve the blockchain technology that we all know. For this it adds the figure of the “state channels”. First, after a study of blockchain technology, data and resources are hosted in the state channels instead of in the blockchain itself. In this way you can save resources and use the blockchain only to record transactions and exchanges on the platform. In this way the scalability of the network is improved.

Second, it proposes that the blockchain be supported only by other decentralized applications that allow data to be stored outside the blockchain. In this way, applications can be stored on a platform that is easier to analyze.

Finally, Aeternity proposes that the consensus mechanism be used to determine system parameters, allowing the network to adapt to changing factors.

What makes Aeternity different?

State channels: State channels are an important discovery in blockchain technology and are the basis of Aeternity’s proposal. State channels allow you to save resources by storing smart contracts on the platform to save resources in the blockchain. In addition, these smart contarcts also allow increasing the privacy of the blockchain since investors can store their data outside the chain and only resort to it in case of disagreement. This makes it easier to store data in the blockchain, speeding up the establishing of contracts and aeon transactions.

Decentralized oracles: The decentralized oracle is a system that connects smart contracts with information from the physical world, being more powerful than Turing machines.

Consensus mode: Unlike most blockchain platforms, Aeternity uses a hybrid consensus system between the traditional Proof of Work (PoW) and the Proof of Stake (PoS).

Low cost of transactions: thanks to the “state channels” Aeternity operations are extremely economical, making possible new ways of platform monetization.

The smart contracts of Aeternity

Another thing that makes Aeternity special is its smart contracts that deserve to be explained separately. As well as the “state channels” the smart contracts of this platform have several innovative features.

First, there is no limit to the volume of smart contracts. You can easily establish a large contract that is hundreds of gigabytes or terabytes, as long as only a small fraction of it is executed. This is possible because the contracts of the platform are not in the same blockchain, allowing several of them to be executed in parallel.

In addition, they considerably improve Ethereum’s to be based on their functionality, which makes it possible to make smart contracts much easier to write and determine. Added to the fact that they are stored in the “state channels” instead of the blockchain, making them much cheaper and scalable.

What kind of applications can be created in Aeternity?

Aeternity retains the main characteristics of the blockchain, being similar in its use. The difference in terms of application development is that the Aeternity network is much faster. So any application that requires fast processing can be executed in Aeternity. Some of them can be:

  • Information markets: For years we have tried to develop decentralized prediction markets using blockchain. With Aeternity’s technology, more accurate prediction markets can be created that analyze faster smart contracts and monetizable predictions of all kinds.
  • Fintech decentralized: the infinite scalability, instantaneous payments and the oracle of Aeternity allow you to execute financial transactions of any level regardless of the number of parameters and the participants that it entails.
  • Crowdfunding: the application allows you to create projects and request financing with the advantage of being able to establish dominant smart contracts. This means that you can execute a project and determine that in case of failure all users receive just what they have invested to protect their funds.
  • Instant Videogame Awards: this allows the creation of a monetization system for games ranging from simple arcade to high-end eSport. All guaranteeing the anonymity of the transactions of the players in a high security reliable network.
  • Blockchain networks: when using “state channels” you can create blockchain networks that work in parallel.

Will there be different types of Nodes in the Aeternity blockchain?

To improve everything, the fundamental principle of Aeternity is the delegation of functions, which is why different types of nodes have been created that are responsible for executing different functions. That is why there will be nodes for:

  • Provide liquidity to Aeternity’s super-fast network, also helping users to connect to “state channels” so that smart contracts can be created between users.
  • Execute decentralized commercial exchanges and collect transaction fees. These same ones will be in charge of functions in the games that are created within the platform.
  • Invest in shares of metals and other stock assets. As well as to recycle old accounts.
  • Take charge of processing prediction applications.

What are the Aeternity tokens?

The Aeons are the tokens of the Aeternity blockchain. Speaking of its functionality, these are used as the energy of the system as it is in Ethereum. Each action within the platform has a price, however minimal it may be, and this is determined in Aeon.

However, it should be noted that Aeternity tokens do not yet exist. Instead the Ethereum is used to determine the value. The main reason is because the platform of the Ether is ideal for this, as well as the fact that the platform of Aeternity is not developed yet.

How to obtain Aeon?

Aeon can be purchased in these markets.

To further understand the concept of Aeternity check the whitepaper, and read the official Medium channel.

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Sources used: Aeternity, Crypto Economy

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