Will Aeternity (AE) Stay for Eternity? - globalcoinreport

Scalable smart contracts interfacing with real world data.
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Will Aeternity (AE) Stay for Eternity? - globalcoinreport

Post by magic8ball » Sat May 12, 2018 10:22 am

“We present a highly scalable blockchain architecture with a consensus mechanism which is also used to check the oracle. This makes the oracle very efficient, because it avoids layering one consensus mechanism on top of another. State channels are integrated to increase privacy and scalability. Tokens in channels can be transferred using purely functional smart contracts that can access oracle answers. By not storing contract code or state on-chain, we are able to make smart contracts easier to analyze and faster to process, with no substantial loss in de facto functionality.”

Consensus mechanism of the Aeternity Network

Aeternity (AE) aims to be the most accessible network to the developers. Hence they are working on creating JSON APIs and JS libraries for web development. The Aeternity network uses a combination of Proof-of-Stake and Proof-of-Work consensus mechanism. Proof-of-Work helps in determining the block order. The consensus mechanism of the Aeternity network not only facilitates the generation of new blocks but also gives the nod to the answers to Oracle questions as well as the values of the system’s parameters.

A smart contract system must have Oracles that refer to the validity of values from the environment. An oracle basically is the doorway to the data hosted outside the blockchain. But, oracles are generally singular, centralized data streams that often brings in security risks. To determine whether a supplied fact is true a new consensus mechanism has to be placed on top of the existing consensus mechanism. However, executing two consensus mechanisms in this manner is quite expensive (almost the cost of running two mechanisms separately). Also, this strategy does not add security and if attacked it can be made to produce “false” values. The development team of Aeternity is working on converging the two consensus mechanisms into one such as not to compromise on security and to prevent excess expenses. The Aeon token holders can publish an oracle by simply answering a question in affirmative or negative. By planning to decentralize the oracle with their oracle machine, Aeternity will actually tighten the security of the network and the smart contracts developed on it.

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