What is Aeternity (AE Coin)?

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What is Aeternity? | A Quick Overview

Aeternity is a scalable smart contract blockchain technology, which interfaces with real-world data.

Using a scalable and trustless turing-complete blockchain, Aeternity combines proof-of-work with proof-of-stake for a peer-to-peer decentralized global network of nodes.

The History of Aeternity Coin

Aeternity started publishing content on December 28th, 2016 on their medium profile.

Later on May 29th, 2017 they launched their ICO which concluded on June 12, 2017.

On October 25th, they completed their first Aepp bounty followed by a release of their testnet in December and continued development today.

The Founder of Aeternity

Yanislav Malahov - Linkedin - Github

An early blockchain developer who worked with Vitalik Buterin (of ethereum) and is called the “Godfather of Ethereum.”

The Developing Team - Github

The Aeternity Blog - Medium

The Roadmap of AE Coin

While much has been accomplished, here is the current roadmap:

  • Continue To Build Essential Apps
  • Security Audit - Q1 2018
  • Mainnet Launch - Q2 2018

The Purpose of Aeternity

AE tokens were created on the premise that most cryptocurrencies and blockchain were flawed.

That’s why Aeternity uses both proof-of-work and proof-of-stake consensus model intertwined with a smart contract settlement in channels instead of on-chain.

It aims to expand to large relationships with industries like information markets, fintech companies, trustless exchanges, micro and nano payments, crowdfunding projects, and instant video game rewards.

These are a few of the examples which aeternity can program, these complex relationships for a high number of users handling transactions of products and information in parallel.

Utilizing a method of state channels, transaction speeds are only limited by bandwidth, making aeternity a decentralized blockchain that scales easily.

 

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The Features of The Aeternity Blockchain

Proof-of-Stake and Proof-of-Work Consensus Hybrid

Unlike many cryptocurrencies, aeternity uses a unique consensus model.

Proof-of-Work Mining

Using a “cuckoo cycle” PoW there is mining for validation of blocks.

The cuckoo cycle method of proof-of-work allows for more power efficient methods of mining AE coin, encouraging the development of better random access memory (DRAM).

This allows for mining of AE coins even by smartphones, helping for more decentralization then specialized ASIC cards that Bitcoin uses.

Proof-of-Stake Governance

With a PoS system of governance on the AE token network, any holder of the AE token can help with delegated voting. Namely, this is used to update blockchain variables like blockchain size, overwriting faulty states, and more.

Then utilizing prediction markets, users can incentivize their opinions (on forks, results, voting, etc.) and profit on the outcomes.

Strangely, this gives light to popular opinion and allows for more transparency in the governance of the whole.

State Channels (Instead of On-Chain Storage)

Utilizing a network of state channels, anybody can exchange value on the Aeternity blockchain, with quick and trustless precision.

This is a private interaction between users, keeping records off-chain, but transactions public.

With participants in many transactions, only the participants want to hold the transaction and smart contract.

Using state channels these happen off-chain, but after the finalization of the transaction is written into the blockchain.

Aeternity utilizes state channels to help bring transactions offline and allow for parallel processing that makes transactions almost instant.

A Benefit For Business

With smart contracts that settle off-chain, it can let businesses keep their transactions private, while still getting the value of smart contracts on a decentralized blockchain.

Then, with disputes, there is a settlement on the blockchain, similar to a crypto styled court.

Decentralized Oracle

An oracle helps to tell the blockchain about the world we live in.

Using data such as the weather, stock prices, election results, gold prices, death rates, etc.…

This public data gets stored on the tamper-proof blockchain, because if a smart contract requires real-time data than the blockchain can call upon its sourced data itself.

By making the proof-of-stake and proof-of-work governance work with Aeternities decentralized oracle, users can help make sure the data is correct.

Which can then be put into the decentralized prediction markets to determine the likelihood of an oracle producing trustworthy information.

A Few Case Studies Already In Place

Information Markets

Currently, there is a creation of decentralized prediction markets that create a workable theory.

This theory is a way to determine how people think about a specific topic, then allow for the decision making and point towards where the market is going.

Instant Video Game Rewards

AE coins give users full control of their in-game transactions and allow for the settling instantly.

This makes it a minimal fee and fraud-resistant blockchain for video game transactions that can’t be reversed.

Trustless Exchanges

With cross-chain transactions, atomic swaps, and the ease of the aeternity blockchain, exchanges of cryptocurrencies become easy.

Micro and Nano Payments at Lightning Speed

With off-chain state channel transactions, anything can be exchanged.

As users and producers start to increase micro and nano payment usage, quick clearing is necessary, and AE coins clear instantly in state channels for very low fees.

Making content monetization, live video streaming, and a lot more able to occur.

What We Think of Aeternity

This is an exciting project.

It has potential to grow into a massive marketplace, namely the development of the IoT, payments, fintech, and so much more.

We currently don’t hold any AE coins but are going to watch its development.

This is a project which does catch our eye as it is using a hybrid consensus model, paired with a huge development team and state channels.

We will keep you updated on future development as Aeternity is built out.

If you liked this review and want to help support the academy donate some AE Coins below!

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February 22nd 2018, 19:45