Two years ago, on November 11 2016, æternity announced its foundation. æternity ist the most successful ICO so far in Liechtenstein and also reached the status as a Blockchain Unicorn with a valuation of more than one billion dollars. æternity was established by Yanislav Malahov, also known by many as the ‘Godfather of Ethereum’, due to his collaboration with Vitalik Buterin. Now, the blockchain company with its focus on scalability of smart contracts and dæpps has its base in the House of Blockchain in Vaduz.
The demand and interest in decentralised and trustless implementations has risen rapidly in the last few years. Especially since the introduction of Ethereum in 2014, people started being interested in Blockchain and its applications. æternity deals with decentralisation as well as trust-free exchanges and finds solutions to blockchain-problems.
But what is æternity exactly?
On its website, the company states that “æternity is a new blockchain technology, designed to deliver unmatched efficiency, transparent governance and global scalability”.
æternity is also a blockchain infrastructure. Moreover, æternity is a blockchain platform with visionary outlooks as it tries to answer solutions to current challenges, such as smart contracts, tied to using the Blockchain.
AE token are used on the æternity blockchain and are used for all applications executed on the platform. Every move and every step taken on the platform costs and these costs are charged in the form of AE token.
The AE token originally started as an ERC20 token on the Ethereum network and evolved into the current token that is being used on the æternity platform.
æternity works on so-called smart contracts – contracts written in code that will come into force, as soon as pre-determined conditions are fulfilled. That also means, that smart contracts have to be built very carefully, as there is no stopping the sequence, once the conditions have been met.
The company improved smart contracts insofar, as that they got safer, more efficient and more economic. Through æternity, smart contracts also got much faster to use and also much cheaper, as there are fixed execution costs.
Via the consensus, parties can achieve the necessary agreement on a single data value or a single state of the network. At æternity, a consensus can be reached through a hybrid algorithm – the “Cuckoo Cycle” ‘Proof of Work’ (PoW). Which means that some sort of computational effort had to be strived for but is also more energy efficient through the hybrid model than other PoW models. For example, through that hybrid model, it is possible to even mine on small devices such as a smartphone.
The governance of the consensus is on the other hand obtained through the ‘Proof of Stake’ (PoS). This means that the blockchain itself decides who has the right to validate a block through a various combination of random selection of wealth or age.
Through their state channels, æternity can execute smart contracts off-chain. People can directly interact with each other via those state channels. And with the records being exchanged off-chain, the whole exchange is far more private, as the participating parties can only see details of the contract. Smart contracts then only come into force in times of disputes and work as a jury.
Through the speciality of the smart contracts, only people from the ‘inside’ world can interact with the contracts. That means that no external data can be used for smart contracts, which might be problematic at times.
To solve this problems, oracles were created. As blockchains themselves cannot add any outside information, oracles include that information into the system instead.
What is æternity up to at the moment?
After having implemented the Starfleet – giving support to various projects via æternity Ventures, and the security audit, this year – the Mainnet Launch and Airdrop are being planned for the near future. For the Mainnet a contest is being held at the moment.
Having teams all around the world now, interested people can often meet team-members in person at various events within the blockchain, fintech and general technology sphere to exchange ideas.
Stay tuned for more æternity ventures on their website or newsletter, including their event-page for more information and follow us for more information on great blockchain companies based in Liechtenstein!
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