AeternityAeternity is a new blockchain project launched in 2017 which focuses on addressing issues including scalability, privacy and transaction speeds of smart contracts.
What is Aeternity?
Aeternity is a new blockchain project launched in 2017 which focuses on addressing issues including scalability, privacy and transaction speeds of smart contracts.
How does Aeternity work?
Aeternity accomplishes scaling by moving smart contracts off-chain. Smart contracts on Aeternity are run in private state channels between the parties involved in the contracts.
State channels are lines of communication between parties in a smart contract. State channels make it possible to execute smart contracts off-chain. Only in case of a disagreement between the contracting parties does the smart contract code get enforced by the blockchain.
As smart contracts are run offchain, users also enjoy greater privacy. Participants interact privately with each other. Businesses have their records off-chain and not in public. Participants have infinite almost instant transactions. Participants can handle use cases that require very high volumes of transactions.
Another important feature of Aeternity is the use of Oracles. An oracle connects real world data with smart contracts. Oracles provide access to data hosted outside the blockchain. It can provide tamper-proof data which contracts can act upon. Election results, the prices of assets such as gold, weather conditions and many other real-world values play a crucial role for many business applications.
Aeternity runs on both Proof of Work and Proof of Stake consensus model. Transaction consensus is achieved via the Proof-of-Work algorithm. Proof-of-Stake is used for governance, which is done via (delegated) voting, weighted by the amount of tokens the account holds. AE token owners can vote on development proposals and changes based on the proportion of AE they own.