Aeternity (AE) is a unique blockchain design that incorporates many of the best features of bitcoin, Ethereum and Ripple. Built from scratch using the Erlang programming language, the Aeternity platform offers an advanced array of smart contract-based features, like prediction markets, digital insurance, crowdfunding capacities, and cross-atomic swaps. With the Aeternity platform it is easy to exchange system-native æon tokens for BTC, ETH or any number of other cryptocurrencies without having to go through a 3rd party intermediary (such as an exchange).
Why is Aeternity so innovative
Aeternity powers Turing-complete smart contracts that allow the execution of credible transactions without third parties and intermediaries.
Consensus is achieved via a novel hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) algorithm.
State channels make it possible to execute smart contracts off-chain. The blockchain enforces the smart contract code, only in the case of a disagreement between the contracting parties.
Aeternity is governed by its stakeholders, meaning that miners, token-holders and other participants with a stake in the blockchain have the ability to make decisions together on proposed changes.
Naming System enables user-friendly identities for blockchain entities, such as user accounts, oracles, contracts, etc.
For many business applications it’s crucial to have transactions which are not recorded in public. Smart contracts executed in state channels touch the blockchain only in the case of disagreement, acting like a self-arbitrating crypto court.
State-of-the-art cryptographic data structures and unparalleled decentralization provide robust efficiency and eliminate “single point of failure” (SPOF) issues.
By leveraging state channels as the default way to run smart contracts, æternity becomes the most efficient Turing-complete blockchain and thus enables new forms of commerce via its low cost transactions.
How Aeternity Works
The Aeternity blockchain uses a hybrid Proof of Work (PoW) / Proof of Stake (PoS) model and is programmed in the language Erlang. New Aeternity tokens, known as æons, are mined in a traditional PoW fashion and system governance is controlled through a PoS model. Aeternity achieves full decentralization through a series of interconnected, individually important nodes. It achieves fast data transmission by separating distinct types of data into “state channels,” which allows them to be transmitted interdependent of other types of data. Transaction speed is only dependent on user bandwidth.
Aeternity employs the use of smart contracts through its custom virtual machine environment. It uses Oracles that interface with systems outside the platform to provide real-world data. This makes it highly adaptable for use in predictive activities, similar to Ethereum’s Augur. Its blockchain is secured using a hybrid Proof-of-Work and Proof of Stake consensus mechanism.
The Aeternity ecosystem
Aeternity has spun off a foundation to support open-source developers, entrepreneurs and young businesses who build their projects on æternity.
Research & Academia
Aeternity is continuously researching the newest technological standards and continuously expanding cooperations with international research institutions, keeping the technology safe and up to date.
Tips for securely storing your Aeternity
- Do your own research. Before sending any coins or private data to a wallet, make sure you have researched the wallet provider to make sure everything is above board. Keep an eye out for scam wallets, such as those using URLs only slightly different to the URLs of legitimate wallet providers, and check out some independent reviews for all the pros and cons.
- Back it up. Make use of your wallet’s back-up and restore facility so that if something ever goes wrong with your wallet, you’ll be able to recover your funds.
- Set a strong password. Now is not the time to be lazy when creating a password; take your time to create a strong and uncrackable code.
- Make use of all available security features. Make the most of all the security features your wallet offers, such as two-factor authentication or multi-signature transactions. It’ll offer increased protection for your funds and greater peace of mind for you.
- Update your antivirus software. Take care to regularly update the antivirus protection and anti-malware software on any device you will be using to access your wallet.
- Keep your private keys private. Last but not least, don’t underestimate the importance of your private keys. Store them somewhere safe and don’t share them with anyone else.