What is æternity?
Overview of core concepts and features of the æternity blockchain, links to æternity whitepaper and charter
Founded in 2016 by Yanislav Malahov, the æternity blockchain project was born out of a desire for a more fair Internet supported by scalable, open-source and cryptographic software, with a commitment to technical excellence. æternity blockchain itself launched as the public æternity mainnet in 2018. It is now a blossoming community of users and developers supported via the Aeternity Foundation.
æternity is an open-source blockchain platform designed to deliver scalable and secure smart contracts. It uses a Proof-of-Work (PoW) consensus mechanism similar to Bitcoin but incorporates several innovations to improve upon traditional PoW blockchains. At its core, æternity utilizes a system called "Bitcoin-NG" (Next Generation Nakamoto Consensus), which increases throughput by separating leader election from transaction inclusion. In this system, miners compete to solve complex mathematical problems (Cuckoo Cycle algorithm) to become "leaders." The leader can then create multiple blocks containing transactions (called micro-blocks) for a set period. This results in faster transaction processing and reduced latency compared to blockchains like Bitcoin.
æternity distinguishes itself from other blockchains through several key features:
State Channels: To further boost transaction speed and privacy, æternity employs state channels, enabling participants to interact and execute smart contracts off-chain, only settling the final result on the main blockchain. This leads to near-instant transaction confirmations and significantly reduces fees.
Sophia Smart Contracts: æternity utilizes Sophia, a functional programming language for writing smart contracts. Sophia is designed with an emphasis on security and clarity, minimizing common vulnerabilities found in other smart contract languages. The use of Sophia aims to make smart contracts more robust and easier to audit.
FATE Virtual Machine: The FATE (Fast æternity Transaction Engine) virtual machine executes Sophia smart contracts. FATE is designed for efficiency and security, featuring typed operations, a restricted memory model, and high-level instructions that optimize contract execution and reduce gas costs.
ÆNS (æternity Naming System): This system enables users to replace complex blockchain addresses with human-readable names, making blockchain interactions more user-friendly and less prone to errors.
Native Oracles: Oracles, which bridge the blockchain with real-world data, are a native part of the æternity protocol. This enables developers to easily incorporate external information into their smart contracts, enhancing the functionality and possibilities of decentralized applications.
Weighted Delegated Coin-Voting: æternity features a governance system that allows AE coin holders to participate in the decision-making process concerning the future development of the platform. This system utilizes a weighted voting approach where voting power is proportional to the number of coins held.
Hyperchains: Hyperchains are æternity's innovative solution for creating secure, customizable blockchains that leverage the security of established proof-of-work networks. By periodically anchoring their state to a pinning chain, Hyperchains enable organizations to deploy specialized blockchain solutions with minimal infrastructure investment while maintaining robust security. This technology uniquely positions æternity as a platform that makes enterprise-grade blockchain implementations accessible and practical, expanding the ecosystem's utility for businesses and developers.
æternity is designed to be a versatile platform suitable for a wide range of applications, including:
Decentralized Finance (DeFi): æternity's high throughput and low transaction fees make it suitable for DeFi applications that require fast and cost-effective transactions.
Supply Chain Management: The immutability and transparency of the blockchain can be leveraged to create secure and auditable supply chain solutions.
Gaming: State channels can enable fast and private in-game transactions, enhancing the user experience in blockchain-based games.
Identity Management: The security and decentralization of æternity can be utilized to build secure and user-controlled identity systems that are more user-friendly than other Web3 solutions.
As æternity continues to evolve, it aims to implement further scaling solutions like Hyperchains, a sidechain technology that will allow for even greater throughput and the ability to create private or specialized blockchains tailored to specific use cases. This, along with ongoing development of the core protocol and ecosystem, positions æternity as a platform with the potential to meet the demands of a growing and diverse blockchain ecosystem.
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