Updated: Dec 20, 2019
Aeternity is one of the new platforms for decentralized apps (Dapps), witnessing some pretty rapid commercial adoption since its testnet in 2017. Its Aeon (AE) token is leading on the technology front, by effectively scaling and leveraging Ethereum’s blockchain technology. The cryptocurrency is a decentralized and open-source digital-asset platform, which works on P2P technology.
This guide will discuss the purpose behind the creation of Aeternity, its creators, how does it work, and the various uses and applications.
What Is Aeternity Designed For?
The Aeternity project primarily focuses on improving the scalability and efficiency of smart contracts and Dapps, built on the platform. It solves the issue of scaling by religiously moving the smart contracts off-chain. This means that unlike traditional blockchain platforms that run smart contracts on the blockchain itself, Aeternity functions by running them in private state channels between the various parties involved. Aeternity goes a step beyond Ethereum in solving common crypto issues.
Several features set Aeternity apart. The team behind the crypto coin wanted the platform to be individualistic. To this effect, they included a decentralized oracle machine that would bring in data from various outside sources, for use within the smart contract framework. It also makes use of prediction markets within the platform for the sake of voting and verification.
Who Is the Team Behind Aeternity?
Aeternity is founded by Yanislav Malahov, who is an early colleague of Ethereum founder Vitalik Buterin and a long-time enthusiast of all things crypto. It is said that a conversation that Malahov had with Buterin sparked the idea for Ethereum, which is why he is also dubbed the “Godfather of Ethereum”.
Aeternity COO, Emin Mahrt, is the founder of two tech start-ups (Drop spot and Abend - 30 employees) along with a publishing media company (Proud).
How Does Aeternity Work?
Aeternity works by allowing the development of functional smart contracts on its platform. Instead of supporting stateful programming, the parties in the contract are responsible for the maintenance of the program’s state. The smart contracts on Aeternity run on Chalang that helps in bytecode compilation. However, the platform is looking forward to becoming as developer-friendly as possible in the future by creating JSON APIs and JS libraries for web development.
The Aeternity Oracle Machine allows access to outside data sources, where smart contract and Dapp development is concerned. Their oracle machine works on decentralized oracles, which results in making outside data immutable and unchangeable upon reaching the Aeternity blockchain.
The Aeternity network relies on both proof-of-stake and proof-of-work. Proof-of-stake helps in controlling the governance of the Aeternity ecosystem by giving AE token owners the power to vote on development proposals, and bring in changes based on the proportion of AE they own.
Proof-of-work helps in establishing consensus on the Aeternity platform, by allowing miners to verify new blocks similar to Ethereum and Bitcoin’s current model. However, Aeternity uses a slight variation in the Cuckoo cycle, which combines scalable memory requirements with instant verifiability.
What are Current and Future Applications of Aeternity?
Aeternity blockchain can be accessed by spending Aeon or AE tokens. The settlement of smart contracts and payment system fees is done through AE tokens. There are numerous use cases enabled by Aeternity:
Distributed æpps Ecosystem – Aeternity believes the average user could be accessing blockchain from their mobile device shortly, which is why the Aeternity team is focused on helping bootstrap development of æpps that will create a vibrant ecosystem.
Trust-free Exchanges - Aeternity allows for cross-chain and trust-free atomic swaps, between AE tokens and Bitcoin among many other assets.
Video Game Rewards – Aeternity offers a fraud-resistant network and irreversible transactions to deliver trust-free and secure interactions, which can help all games from the most simple to high-end eSports titles. Users can rely on secure and instant transactions to sit back and enjoy their gameplay.
Micro and Nano Payments – Aeternity handles payments off-chain via state channels. Payments can go through instantly without any delay while maintaining privacy.
Aeternity is a thriving ecosystem since it supports cross-chain trustless atomic swaps among different tokens and digital asset classes. This is expected to increase the token’s usability and adoption.
The growing gaming industry is expected to attract investors to use AE tokens for their transactions since the platform offers instant in-game payments, under full control of the users. Right now, Aeternity is on the cutting edge of that movement and this is only expected to grow in the future.