Transaction volume reaches new high
Another challenger of Ethereum
Given the large number of blockchain projects that exist today, it can be difficult for young projects to stand out from their competitors. Ethereum wants to challenge a variety of projects and create a faster, safer, and more user-friendly platform on which to develop smart contracts and distributed applications (dApps). One of these competitors is Aeternity.
Aeternity is a blockchain platform with the vision of proposing an alternative to existing governance, economic and financial intermediaries. Simply put, one could also say that Aeternity, with its technology, wants to be a platform for new software solutions without intermediaries in (almost) all areas of everyday life.
Aeternity is a public, open-source, blockchain-based distributed computing and digital-asset platform that builds upon decentralized cryptographic P2P technology. The platform is open to anyone, anywhere in the world to use.However, this description could also apply to a large number of other crypto currencies and smart contract platforms. However, Aeternity has big ambitions and does a lot to stand out with its features from the other competitors.
The founder of Aeternity is Yanislaw Malahov, who calls himself the “Godfather of Ethereum” despite the competition with Ethereum. In a May 2015 medium post, Malahov also describes why he calls himself so and has published a chat course on how he inspired Vitalik Buterin to found Ethereum in its current form.
Another feature with which Aeternity wants to set itself apart from the competition are the so-called “oracles”. These should ensure that Aeternity can integrate real information, either from human or non-human sources, e.g. sensors, into the block chain. The data generated beyond the blockchain should be able to be used in Smart Contracts. It is conceivable that a Smart Contract is dependent on a condition whose fulfilment is measured by sensors (e.g. weather data) and written into the blockchain. If the condition is fulfilled, the Smart Contract is executed.
The third problem that Aeternity wants to address is the centralization of the network through the consensus algorithm. In the case of proof-of-work blockchains, there are concerns about the centralisation of mining by large mining companies. In the case of proof-of-stake blockchains, there are always critics who claim that the accumulation of wealth also leads to centralization. To avoid this problem, Aeternity has implemented a mixture of proof-of-work and delegated proof-of-stake.
The hybrid consensus mechanism works by using the Proof-of-Work (PoW) to review transactions and the Delegated Proof-of-Stake for Governance to secure the decision-making process in the network. The transactions in the Aeternity network function by means of the so-called “Cuckoo Cycle” algorithm, which is more energy-efficient than Bitcoin’s. The Cuckoo Cycle algorithm is used for the transactions in the Aeternity network. In addition, the Aeternity team has decided to rely on ASIC resistance to keep mining at GPU level for as long as possible. The “Cuckoo Cycle” was chosen because it is considered the most promising algorithm by the team to ensure that ASICs will not be developed in the near future.
Author : Jake Simmons