æternity | POS/POW blockchain to unlock the Internet of Value
⚡ (en)lightning smart contracts on global scale
Hello IoT, IoV, FinTech, Video Gaming, The Unbanked, Trustless Exchanges, and Instant Micropayments!
æternity is a new blockchain - designed for fast and secure smart contracts interfacing with real-world data via a decentralized oracle.
Scalability is achieved by using (trustless) Turing-complete state channels, a major difference to Ethereum. This way the smart contracts also become easier to analyze and more secure.
The interface to real-world data is done via an innovative oracle design, which is based on prediction markets.
State channels increase scalability since all transactions become independent and can thus be processed in parallel. Additionally, this means that contracts never write to shared state, greatly simplifying their testing and verification.
æternity will be powered by the æternity token (AE symbol, also 'æon').
æternity tokens are used as payment for any resources one consumes on the platform, as well as the basis for applications implemented on the platform.
The distribution of æternity token [AE] in the genesis block will be determined by a smart contract hosted on Ethereum.
æternity tokens will be managed by accounts which will have an address and balance, implemented alongside a alias (naming) system
which will support human-friendly names mapped to an aeternity address.
æternity identities are essentially a triple of (pubkey, hash, name). Pubkey from the account, name from the alias and hash
linking to further data, e.g. on IPFS.
A blockchain architecture that is scalable, governable and scriptable
AE are the access tokens to the æternity network and act as a unit of account for the resources spent on æternity.
Furthermore, æons are the energy for any application implemented on the platform.
The initial amount of AE for the genesis block will be determined by a smart contract on Ethereum.
State channels enable highly scalable, trustless transactions of value and purely functional, easily verifiable turing-complete smart contracts.
State channels effortlessly support an immense throughput of transactions. The execution as well as settlement happens off-chain.
In other words: They are one-to-one- sidechains, where the blockchain acts as a public crypto court.
A crucial feature for most contracts, whether encoded as text or as code, is the ability to refer to values from the environment.
The æternity Oracle Machine provides real-world data to the blockchain.
Each user can ask questions about the environment. Everybody can answer. The consensus mechanism comes into play in case of disagreement.
In the vein of Aaron Swartz’ work and Namecoin, æternity features an easy to use name system, that is both decentralized and secure, while still supporting human-friendly, memorable names.
The blockchain’s state includes a mapping from unique human-friendly strings to fixed-size byte arrays, which are individually customizable.
ACCOUNTS & IDENTITY
æternity's accounts are permission-less, but still allow customization via schema.org's semantic web scheme.
Create and own your identity on the æternity network - then use it everywhere on the web!
æternity technology is free to use and easy to incorporate.
MIT-licensed modules will allow easy implementation in blockchain consortiums and will enable free and open access for developers to be able to build on the æternity platform.
Cross-chain atomic swaps do the rest.
CONSENSUS AND GOVERNANCE
Hybrid Proof-of-Work Proof-of-Stake blockchain
Consensus achieved by PoW mining
Algo: 'Cuckoo Cycle' by Tromp: GITHUB WHITEPAPER BLOG
Minable with even with smart phones achieving highest possible decentralization
Governance via PoS prediction markets
Prediction markets are proven to very good tools to destill information out of a crowd of people. Better then simple voting!
TRANSACTION SPEED ESTIMATES
Trustless off-chain transaction speed: infinite and only limited by the speed of light as these transactions are inside state channels
On-chain transaction speed: We define following variables for the following calculations:
B = block size in bytes
F = blocks till finality
R = time till finality in seconds
T = transaction size in bytes
The variables that define the protocol are all constantly being updated by the consensus/governance. From their initial default
values, we can calculate the initial default rate of transactions per second.
Transactions per second = B F / (T R)
B = 1000000 bytes = 1 megabyte per block
R / F = 30 seconds per block
R = 243600 seconds per day
F = 2460*2 blocks per day
T = 1000 bytes per transaction
1000000 ∗ 24 ∗ 60 ∗ 2/1000/24 ∗ 3600 = 1000000 / 1000 / 30 = about 32 on-chain transactions per second, which would be
fast enough to sign up every human with state channel technology within 8 years.
These variables will be determined by token holders (PoS Governance).
For further details read the æternity blockchain whitepaper: Sec. E(4): Transactions per second at a given memory requirements
æternity’s blockchain leverages state channels which makes smart contracts faster, more secure and more private.
- First, two users open up a state channel via depositing some AE tokens into it.
- They can agree to arbitrary smart contracts. This allows for transactions to be conducted as fast as information can be transmitted and processed by the parties, instead of them having to wait until the transaction has been validated—and potentially finalized— by the blockchain’s consensus mechanism.
- This æternity blockchain is used to settle the final outcome or to resolve conflicts that arise.
æternity uses a Turing-complete (new) virtual machine with MAST (Merkelized Abstract Syntax Trees) to process smart contracts. Within æternity, smart contracts are pure functions in the form of financial agreements that distribute funds according to predetermined rules. MAST enables that, in case a smart contract needs to be enforced by the blockchain, only the relevant part of the smart contract needs to be published, achieving again higher scalability and confidentiality.
- Only the involved parties know about the contract
- Only parties that have an open state channel can create a valid contract
- Every state change or code update gets signed by both counterparties of the contract
- It is only submitted to the blockchain if its outcome is disputed, in which case the code is only ever stored as part of the submitted transaction, never in any other state.
- If this happens, the blockchain distributes the tokens according to the contract and closes the channel.
æternity core blockchain code is written in Erlang, which makes it easy to write distributed, fault-tolerant, soft real-time, highly available, non-stop applications. Erlang is the perfect language to write a blockchain from scratch and by using it, we achieve a superior operational stability and performance.
WEB AND MOBILE INTEGRATION
æternity is 'mobile first', which is true because of the convergence of mobile and web
technologies and new mining algo which is even efficiently minable on smart phones.
or services easier.
will be the framework of choice two write reusable modules in, for the
UI. These modules can easily be reused on the web,
as well as on mobile, and even compile down to native apps on mobile, becoming more snappy.
Also an Ethereum and Bitcoin bridge via Cosmos/Polkadot is planned.
æpps and use-cases for æternity's smart contracts
An excerpt of what can efficiently be built on æternity, the sky is the limit!
Latest efforts within the field have seen many developers create decentralized prediction markets which combine the best efforts of what academics call a workable theory, in order to facilitate decision making and pointing outright where the markets heads to.
On the same principle as with micropayments, æternity brings prediction markets to the next level!
The technology allows prediction market smart contracts right out of the box. From simple gambling, up to monetized weather predictions and event contracts.
Infinite scalability, instant payment functionality and Oracle prediction enables us to automate financial transactions that involve large amounts of parameters with any number of concurrent users.
One of numerous things we can create with this is a new way to fund projects or even governments. A system, in which the funding is only unlocked upon completion of one or more selected events.
Additionally it can be set to only unlock funds, if the outcome that is to be reached with the funding, is predicted favorable by the Oracle.
How about crowdfunding using dominant assurance contracts? These specific smart contracts can be used to raise money for your projects and, at the same time, secure contributors against failure. If a project is unsuccessful, all participants get their contributions back.
Using an oracle, æternity can additionally ensure that the provider of the good or service only gets paid after delivery.
The ability to exchange tokens is an essential part of a thriving ecosystem, providing for efficient cooperation and transfer between different blockchain projects.
aeternity allows for cross-chain, trustless atomic swaps, for example between aeons and Bitcoin as well as many other assets.
Instant Video Game Rewards
Gaming is a huge, steadily growing industry especially in the blockchain ecosystem with its obvious advantages; Users are in full control of their in-game transactions, which means fees are kept to a minimum with no intermediaries. A fraud resistant network and irreversible transactions provided by blockchain technology deliver trustless and secure interactions.
From simple games to high-end eSports titles, with æternity, users can rely on secure and instant transactions, sit back, and enjoy their gameplay.
Micro & Nano Payments
The payments market is highly competitive and, at the same time, offers countless innovation opportunities to streamline today’s confusing and ineffective ecosystem.
æternity's unique way of handling transactions brings this to the next level by handling payments off-chain via state channels. This allows them to go through instantly, while retaining your privacy.
you heard that right, instantly!
Imagine banking for the unbanked, content monetization, paid API calls, decentralized live video streaming and a lot more.
æternity bounty program
The best way to get a piece of æternity
The æternity team is excited to present you the official AE bounty program. This is our first such initiative. More will follow.
Over the next weeks, we invite you to participate in our campaigns and help us spread the word about the æternity blockchain. By putting yours skills to work, you will have the chance and privilege to be among of the first receiving the fuel, powering the æternity blockchain.
How big is the bounty?
For this bounty program, æternity has reserved 1 million AE Token (~ around 1.000 ETH). All of these AE tokens will be fully distributed among the æternity bounty campaign participants. As the total amount of participants is unknown, the AE token will be allocated based on a predetermined amount for each bounty campaign.
Types of campaigns and funds distribution
- Signature campaign bounty: 350.000 AE
- Translation campaign bounty: 200.000 AE
- Contests: 100.000 AE (Contest #1, Live NOW!)
- Blog Article: 250.000 AE (Will be announced soon)
- Facebook campaign bounty: 50.000 AE (Will be announced soon)
- Twitter campaign bounty: 50.000 AE (Will be announced soon)
Starting with a signature and translation campaign
We are announcing our signature and translation campaigns first. There will be other exciting ways to earn AE tokens.
Fun contests coming up
With the goal of spicing things a bit, we decided to add a pinch of humor to the the bounty mix. We plan to announce four contests in the coming days and all of them will have a unique theme:
- T-shirt design (Now Live!)
- Meme contest
- Infographic contest
- Video contest
Each contest will distribute 25.000 AE among four winners. Excited already?
T-shirt design contest — Now Live!
Find more information, visit the Bitcointalk thread.
Get the details now!
For more detailed information and ways to get involved, please visit the official æternity bounty thread at Bitcointalk.
Get a piece of æternity!
The Digital Insurance Marketplace
Blockchains excel in trust management and transparency. Any bells?
The entire global insurance market is based on trust management. The process of creating an insurance contract evolved through the centuries, aiming to sell “peace of mind” to anyone with doubts about the future. A simple human interaction — the giving of a promise — slowly became “institutionalized”. The verbal commitment, although never broken by chivalrous men, was simply not in a position to accommodate the complexity of relations between parties with unknown moral stature. In time, “one’s word” became a source of protection only in small, closed communities, while insurance acquired the status of financial product and began to heavily subsidize the pulp and paper industry.
Today, the insurance industry collects around $5tn a year in premiums(1). One can ensure anything and any risk that can be measured, can be reduced by a promise of payment. However, much like other industries that have accompanied human societies on their path of political, economic and social evolution, the insurance sector has yet to make full use of modern technology. The ripples created by interconnected, computational devices reached the ancient bastions of promise formalizers, but their effects were not as profound as in other sectors. Even today, “insurance is arguably one of the most old-fashioned, analog consumer services in existence.”(2) If it works, why change it?
Information technology is indeed helping the insurance companies reach potential users directly and make better-informed decisions for policy underwriting. These applications of technology, however, are induced primarily by “internal” competition. Everyone in the sector wants a bigger part of the pie and technology provides a way to improve the “façade” of insurance industry.
On the inside, things look a bit different. “Companies are personal heavy, with agents, adjusters and analysts, comprising more than 2 million jobs (US figures). Systems are of the “legacy” type (read antiquated), built around paper documents. The average age of life insurance agents is 59 years old and it is estimated that there are an average of three duplicate processes in each customer sale. The insurance industry is currently relying on a time-consuming, costly and often opaque system. This results in low customer satisfaction, despite heavy marketing investments. (2)
Insurance is About to Get “Blockchained”
The primary feature of blockchain technology is trust management or, even more accurately, the absence of need for trust management. The Bitcoin network is often described as the “first permanent, decentralized, global and trustless system of records”. Even if you know nothing about the technology, your intuition tells you that insurance (perhaps banking too, wink) might be a good use-case for blockchain technology. Trust your intuition.
Currently, 14 of the top 30 banks are engaging in blockchain proofs-of-concept (PoCs), while 21 of the 63 publicly regulated stock, futures and options exchanges are testing the technology for payments, clearing and settlement (3). Finance and banking are flirting with the idea of consortium and private blockchain PoCs. Transactional efficiency, real-time clearing & settlement, the elimination of third parties and the promise of blockchain programmability (by smart-contracts) are the primary features that attract big finance interest (and money).
There is one vastly important difference between banking/finance and insurance. “While capital markets or trade finance are based on information asymmetry — an exporter doesn’t share profit margins, for example — insurance demands information disclosure”. Interestingly, the “public” part in “public blockchain” (such as Bitcoin or Ethereum) refers to the fact that all transactions are transparent. If you can identify a network of participants with unique public addresses, you can infer information about their transactions, balance and ability to cover their financial obligations to third parties. There is no need to pay for this information. It is on the public blockchain, free to be used by anyone. Blockchain provides transparency to financial operations. Let’s go a bit further.
Blockchain Technology — Prerequisite for a Decentralized Economy
The insurance industry is composed of centralized entities. Decisions on premiums are made by analysts using complex statistical models and various other data. Insurers determine the odds and decide on the amount of their compensations for giving a “promise to pay”. Does this sound familiar to you? If you are thinking of betting, you are on the right track. What insurance companies do is to create a bet, set the odds, select triggers and define execution. You know what? Blockchain technology allows for perfect replication of that process.
Blockchain for Insurance
In order for insurance on the blockchain to work, a few features must be technologically achievable:
Identity of the insured. That can be attached to a unique address (a Bitcoin address in the case of the Bitcoin blockchain), the private key of which is protected by a password and/or 2FA solution. User reputation can be fully managed on the blockchain through digital identities (think electronic signatures). And that’s exactly what the “bookies” (insurers) need.
Insurer/bookie setting the odds. There must be a way to determine the odds of an event occurring. How about a prediction market? Public blockchain solutions today do not offer integrated prediction markets. This service can only be provided by “attached” systems. This leads to increased complexity and inefficiencies, raising the cost of use. In the case of Ethereum, a prediction market service may be provided by Augur or Gnosis. For Bitcoin, HiveMind is considered the most promising project.
What is a prediction market? It is a market where users can bet on outcomes. According to Paul Sztorc “Individuals might ‘bet’ on natural disaster, death of an essential leader, election of a ridiculous leader, industry-killing technological innovations, crippling regulatory activities, pandemic, disruptive weather or any other events.”(2)
In the case of blockchain-based prediction markets, the “bookie” or the insurer is anyone willing to bet on the outcome of an event.
Blockchain technology for prediction markets will change the relationship between risk modeling and underwriting, completely flattening the bond of trust into a simple marketplace. Blockchain-based prediction markets will become the insurance industry.Figure design by Dan Verowski.
Immutable contracts. On a blockchain, cryptographically-secured smart contracts eliminate any trust-related risk. If event “X” happens, execution is immediate and irreversible.
Transactional efficiency. Blockchain technology can ensure quick payments and clearing. However, some solutions are better in this than others. Scalability continues to be a big issue for the most popular public blockchains.
æternity Blockchain — Tailor-made for Disruption
The æternity blockchain incorporates all features required for a scalable, secure, stable, open and efficient insurance platform.Figure design by Dan Verowski.
Prediction markets are incorporated in the consensus mechanism and allow anyone to bet on the outcome of any event.
Oracles, using prediction markets enable users to stake digital currency and be rewarded for supporting the correct answer and punished for manipulation attempts.
State channels enable parallel processing of smart contracts, eliminating scalability concerns for complex user relationships.
Payment execution can be done off-chain, allowing for transactional speed limited only by peer bandwidth.
Simply put, the technological opportunities that these powerful features create can potentially make æternity a force of disruption in the insurance industry.Figure design by Dan Verowski.
Would you like to know more?
(1) CoinDesk. Report: Blockchains for Insurance. CoinDesk. URL
(2) Shipley, Erin and Zhuo, TX. Why the recent hype about insurance tech will be just the beginning. TechCrunch. Jun 6, 2016. URL
(3) CoinDesk. State of Blockchain Q3 2016. CoinDesk. Nov 16, 2016. URL
æternity Rewards Campaign (Spanish) Campaña de recompensas æternity
La principal característica de un proyecto de código abierto exitoso, es su capacidad de integración con su comunidad. En æternity nos encanta estar siempre en contacto directo con nuestra gente, por eso estamos felices de anunciar nuestra campaña de recompensas, en la que estaremos premiando su participación.
No te quedes atrás.
Ya hay disponibles dos campañas y dos concursos de los que puedes formar parte; más están por ser anunciados. En total serán 1,000,000 de AE Token(1000 ETH) a repartir entre los participantes.
Distribución de fondos.
Así quedan divididas las campañas y concursos:
- Campaña de firmas: 350.000
- Campaña de traducciones: 200.000
- Concursos: 75.000 (#1 anunciado)
- Artículo de Blog: 125.000 (*)
- Campaña de recompensas en Facebook: 25.000 (Muy pronto)(*)
- Campaña de recompensas en Twitter: 25.000 (Muy pronto)(*)
- Viene mucho más [200.000] (Muy pronto)
La campaña de firmas (en bitcointalk) no aplica para usuarios Newbie.
En la campaña de traducciones, solo se aceptará una traducción por persona y está prohibido el uso de traductores automáticos. Los 200.000 AE Token se repartirán entre la cantidad de personas que aporten traducciones válidas. Eneste link puedes revisar cuáles son los idiomas que ya están traducidos o reservados; si conoces otro ¡aprovecha! estás a tiempo de generar algunos ingresos extra.
El primer concurso es para diseñadores. Se trata del diseño de la franela oficial del proyecto. Estos son los montos a repartir para los más creativos:
- 1er Lugar: 12.500 AE Token
- 2do Lugar: 7.500 AE Token
- 3er Lugar: 3.750 AE Token
- 4to Lugar: 1.250 AE Token
El artículo de blog es uno de los mejores pagados. Pueden recibir 10, 20 o 30 acciones del monto total, dependiendo de la calidad del artículo.
En nuestro hilo de bitcointalk están los detalles de todos los concursos, recuerda revisar todas las condiciones antes de participar.
Muy pronto serán publicados los detalles de las campañas de facebook, twitter y más concursos. 200.000 AE Tokenquedan por repartir.
(*) (19.03.2017) La cantidad se redujo a 2 debido al aumento reciente del precio del ETH. Pronto serán anunciados nuevos premios por valor de 200.000 AE.