Aeternity Blockchain: The Oracle of Data

in #aeternity7 years ago

Aeternity is a promising blockchain technology being designed for IoT, FinTech, Gaming, decentralized exchanges, and people lacking access to a bank. The team's philosophy is to push the boundaries of innovation and get blockchain to the point of mainstream acceptance.

State Channels

One aspect of this blockhain are State Channels. Smart contracts on Aeternity can only exist inside these state channels and in the event of a disagreement, the smart contract will be enforced by the blockchain. This is claimed as a breakthrough for blockchain tech. The network of state channels enables an exchange of value with anybody around the world. All businesses keep their records off of the public chain, and participants can transact as many times as they want.

The Decentralized Oracle

The underlying computational model is known as a Decentralized Oracle. These are oracle machines that allow connection with real world data from the public domain. They are more powerful than Turing-complete models. The Oracle helps by providing tamper-proof data and executing transactions based on it. This is applicable to things such as precious metal prices, weather conditions and election results. An advantage of the Aeternity Oracle is it is designed for decentralization, unlike many 'Oracles' of other cryptocurrencies where they are a single point-of-failure.

Consensus Mechanism

Aeternity's consensus mechanism is reached through a hybrid approach using the Proof-of-Work and Proof-of-Stake algorithms. The "Cuckoo Cycle" of this PoW is efficient with power and enables to development of DRAM chips. PoS works through on-chain prediction markets. With this model, even smartphones are able to mine for tokens, bringing a new level of decentralization to mobile technology.

Governance Structure

Governance works through the mechanisms of prediction markets and the data they collect. The on-chain prediction markets project it to a single number between 0 and 1. This lets the miners know which version of Aeternity they should be mining on. Certain blockchain variables are also determined through governance such as price to computer for mining and blocksize.

Overall it looks like a great coin to keep your eye on. Do you think it has a future life on the moon? :)


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