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What is Aeternity Token and what is its future? Fully Explained.

What is Aeternity Token and its future? Fully Explained.

Understanding the complete use case of the Aeternity project.

Introduction

With over countless cryptocurrency coins in the market, it is highly challenging to stand out from the crowd. Unless the project comprises of some amazing real-world attributes with it. Apart from Bitcoin and Ethereum, there are a number of other Crypto projects as well which are not known, as some of them are still in their developmental stages. The Ethereum Network has independently spurred more than hundreds of ERC20 token based Crypto projects alone, one of which is The Aeternity Project.

The Aeternity project

The Aeternity project is very similar to that of Ethereum but considers the second layer security measures as the primary one. The Aeternity project was initiated by Yanislav Malahov, one of the self-proclaimed “Godfather of the Ethereum project” who is no more a part of it. It is said that he was in the development of the Ethereum project in the initial days itself but left the company for his dedication towards the Aeternity project. The Liechtenstein based project has also partnered with one of the major Erlang & Elixir consultancy, Erlang Solutions. Aepps is the Aeternity version of Ethereum’s Dapps.

Parting ways

The original white paper for the Aeternity project was released three prominent members of the project namely Yanislav Malahov, Zack Hess, and Jack Pettersson. However, later on, Zack had to leave the project due to the misunderstanding between the team members in August 2017. Amoveo is another cryptocurrency project on which Zach Hess is currently working upon. The project incorporates some of the best developers throughout the world in the Erlang language development with the experts having vast amounts of experience in the industry.

Aeternity Crowdsale

With 1000 AE tokens per ETH, the first phase of the initial coin offering was conducted in April 2017, where the project raised 121,212 ETH and 324 BTC. During the second phase of the offering, the value of the tokens was increased to 700 tokens per ETH and raised almost 103,538 ETH and 1132 BTC.

The attack on Aeternity network

In July 2017 the network was attacked by a multi-signature parity wallet hack where 82,000 Ethereum tokens where lost. This incident has been highly controversial in the Ethereum community as recovery of the lost tokens is highly unlikely to happen.

Aeternity State Channels

The Aeternity Blockchain network incorporates something known as “State channels” where frequent transactions between two users can be taken out of the Blockchain, and by creating a state channel between them transaction can be undertaken by using a smart contract to maintain the correctness of the transaction. Only when the channel is closed, the final balances are updated on the main Blockchain. This process effectively reduces the congestion on the main Blockchain. This will effectively scale the Blockchain to almost 1000 TPS.

Aeternity Mining

The project members claim that the process of mining can also be carried out on smartphones itself. Thereby bringing a high degree of decentralization among the nodes. The project envisages a hybrid of both Proof Of Stake and Proof Of Work consensus mechanism for mining.

Aeternity Governance system

The cryptocurrency project supports an  On-chain Governance System where the users participate in the process of voting. The value of each vote of a particular user depends on the number of tokens they own. This system has been in a constant controversy. However, when it comes to an On Chain Governance system, the hasty decisions of implementing a hard fork can be avoided. Ethereum’s hard fork due to the breakdown of the DAO is a living example for this.

Oracle facility

Getting some information on to the blockchain network is defined as Oracle. Prior to the development of Aeternity project, inserting data onto the blockchain was highly difficult. For example, if the Ethereum network needs to put the prices of any stock on the Blockchain then it had to employ an Oracle service company to do so, but with the Aeternity project, as the Oracle protocol itself is integrated with the Blockchain, the process is hassle-free.

Future of Aeternity

As the project offers the execution of smart contracts through State Channels, effective scalability is provided and it seems to be satisfying all the Turing conditions. The project’s development seems to be going in the right direction towards a completely automatized Blockchain community run through smart contracts. The cryptocurrency project is aspiring to overcome a number of massive challenges. The project has very high goals and even if it doesn’t succeed, it will undoubtedly land on better levels, than other cryptocurrencies in the market.  Hence it can be considered a worthy investment.

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