Aeternity (AE) — The next generation blockchain platform and a strong competitor to Ethereum
Bitcoin laid the foundation of a new decentralized governance model that will change the way how we think about currency and money in general, and how we conduct business with each other. Bitcoin is disruptive for sure, but it has a lot of limitations which gave birth to the second generation blockchain platforms like Ethereum, which were much more customizable and presented a lot of other opportunities to use the blockchain beyond just currency and payments.
Since the launch of Ethereum, it went through a lot of roadblocks and soon started facing the kind of problems which no one has ever thought before. Ethereum Smart Contracts were Turing Complete, but they lacked the proper level of security and that led to the famous DAO hack which incurred a total loss of more than $100 million USD alone, but that wasn’t enough. Who would have thought that by the launch of a basic application called CryptoKitties, the entire Ethereum network would become chocked and literally unusable?
Now the question arises — If a single application can bring down the entire Ethereum network to a halt, how can we utilize its customisability and usability? The simple answer to this question is that although Ethereum presented newer possibilities than bitcoin, it too had a lot of technical limitations. The biggest problem was security, and scalability. The Ethereum Foundation started many new initiatives to curb some of those problems, but all we see today are future roadmaps and research initiatives. However, many new companies are coming forward and launching innovative solutions to solve some of the most notable problems faced by Ethereum today.
Introducing Aeternity — A strong alternative to Ethereum
Aeternity is a programmable blockchain platform, with its native currency called AE. You can think of Aeternity as a greatly improved version of Ethereum with more customisations, scalability and security.
There are six main components of Aeternity blockchain platform:
- Smart Contracts — Turing Complete smart contracts with a Functional Typed Warded VM for better execution.
- Consensus Algorithm — Aeternity uses a hybrid of Proof of Work (PoW) and Proof of Stake (PoS) consensus algorithm.
- State Channels — Unlike other such platforms, Aeternity offers state channels for offline execution of smart contracts.
- Oracles — With Aeternity, you can easily link third party data sources called Oracles directly to the blockchain platform.
- Unique Governance — Aeternity blockchain platform takes into consideration all the stakeholders, which include miners, token-holders and other participants with a stake in the blockchain.
- Naming System — Naming System enables user-friendly identities for blockchain entities, such as user accounts, oracles, contracts, etc.
As of September 2019, a single AE is traded for $0.21 USD and has surpassed a total market cap of $60 Million USD which makes it the among the 75 largest cryptocurrencies in the world according to CoinMarketCap. AE also has a healthy daily 24h trading volume of more than $33 Million USD. Based on its traction, we highly recommend AE to any investor who is looking to have innovative blockchain platforms backed cryptocurrencies in his portfolio.