What is an Aeternity Coin?
Aeternity Coin is a cryptocurrency, based on the Aeternity platfrm. In October 2016, the development of the Aeternity platform began.
This is a new, open-source blockchain project that takes up and enhances the foundations of Bitcoin and Ethereum. The project attracts attention in particular through the approach of a new blockchain technology and a decentralized virtual oracle.
The central focus of the Aeternity platform and the planned ecosystem is the Aeternity Coin. This token will be used as a form of payment for all activities and services related to the project.
Who works on the Aeternity project?
The Aeternity team consists of 36 members. Of these 36, over 20 are involved as developers in the project. This shows that the focus of the project is on the development of the new blockchain technology.
The founder, Yanislav Malahov, jokingly describes himself as the “Godfather of Ethereum”. According to his own information, he was at least indirectly involved in Ethereum’s ideas. He had become acquainted with Buterin long before his work on Ethereum and had exchanged ideas with him. Other key members are Marion Vogel (Director), Nikola Stoyanov (CBDO), Vladislav Dramaliev (Marketing), and Emin Mahrt (COO).
How does the Aeternity Platform work?
Aeternity’s blockchain is based on Bitcoin and Ethereum technology, combining the strengths of both systems. For example, it uses a hybrid protocol with proof-of-stake and proof-of-work. This is intended to address the main concerns of Aeternity: better scalability and more privacy.
The company has also come up with an improvement in smart contracts. Typically, transactions and smart contracts are stored in the blockchain and are then traceable to everyone within the network. With Aeternity, tokens can now be transferred between parties to a smart contract via channels, without having to store the code of the contract on-chain.
The blockchain only intervenes and the smart contract is brought out if there is a conflict or disagreement between the parties. The blockchain of Aeternity then serves as a kind of “crypto-court”, which can decide as a last resort. Otherwise, only the participating parties know the content of the Smart Contract.
Another benefit is the significantly improved transaction rate. The speed is limited, in principle, only by the available bandwidth. Aeternity’s blockchain technology could even outperform and scale the speeds of centralized models, for example.
What are the special features of Aeternity Coin?
Erlang programming language:
The Blockchain and Aeternity were written in Erlang. According to the Aeternity website, this language is particularly well suited for building a blockchain. It is tolerant of possible errors, thus much more powerful and stable than other programming languages.
Stateless smart contracts:
This form of smart contract is particularly user-friendly. It enables the writing of distributed, fault-tolerant, short-term or permanent applications. This makes creating smart contracts even easier and more flexible.
In the context of smart contracts, “oracles” are often unavoidable. Such an oracle, in the context of blockchains and smart contracts, is a service that finds and verifies real events and transmits this information to a blockchain.
This data can then be used by smart contracts to review the terms and conditions specified in the contract, and if applicable, initiate a payout to a party. Blockchains cannot access data outside their network. Therefore, they depend on the oracles. An example of this would be betting games. The outcome of the game must be known in order to decide who won and who placed the bet.
The blockchain of Aeternity supports oracle with the “Oracle Machine”. It is closely linked to the blockchain and is still working with it.
Cuckoo Cycle mining algorithm:
Aeternity has a memory-efficient mining algorithm that solves the ASIC problem that affects the evidence of work-based blockchains. The mining algorithm allegedly offers great decentralization potential. According to the white paper, the algorithm should be so efficient that even low-power devices, such as smartphones, could be mined.
Aeternity Coin by the numbers (as of 19.01.2018)
Aeternity has a market capital of $347,598,968. The daily trading volume amounts to US $2,755,690. Of the total 273,685,830 Aeternity Coin, there are already 233,020,472 in circulation.
In the token ranking of the website coinmarketcap.com, Aeternity Coin is in 83rd place.
Possible uses for Aeternity Coin
Aeternity Coin can be used for a variety of purposes. First, it allows the user to gain access to the Aeternity blockchain. The official website of the developers also mentions many other possibilities. These possibilities include use for information markets, crowdfunding projects or instant payouts in various online games.
In addition to these application-based capabilities, it should also be used as a regular means of payment for transactions through the platform.
Bitcoin is considered the pioneer in the application of blockchain technology. Several years later, Vitalik Buterin followed with Ethereum and the smart contracts to expand the application possibilities of blockchain and to repair weak points.
Aeternity could now be the next step in the evolution of the blockchain. The company has produced some key innovations that are promising. The company will have to prove the efficiency of the new blockchain after the second quarter of 2018 at the latest, when Aeternity’s main network officially goes online.