Scalable smart contracts interfacing with real world data.

Aeternity

With the intention to take on issues regarding scalability,  scripting safety and cheap access to real-world data of current  “smart contract  platforms”, Aeternity has developed a new Blockchain technology. Built entirely from scratch and not (as some may think) built on the Ethereum blockchain. It does, however, parallel Ethereum somewhat, as it does Factom and Augur.

As proclaimed in the whitepaper:

We believe that the lack of scalability, scripting safety and cheap access to real-world data of current “smart contract platforms” come down to three core issues.

First,  the currently prevailing stateful design makes smart contracts written for the platform  hard to analyze, and statefulness combined with sequential transaction ordering complicates scalability.

Second, the high cost of bringing real- world data into the system in a  decentralized, trustless and reliable way complicates or outright prevents the realization of many promising applications

Third, the platforms are  limited  in  their  abilities  to  update  themselves,  in  order to adapt to new technological or economical knowledge. We
believe that each of these three problems have clear solution paths that should be explored

Specifics and features

What makes Aeternity different from other blockchains is that users will be able to interact with each other via state channels, instantly and privately. Business interactions are kept off chain, without having to expose your smart contracts or transactions publicly. Because this will make the blockchain “light” there is no limit to a number of transactions which can be performed.

Furthermore, there will be a Proof of Work and Proof of Stake system. Mining will even be possible on smartphones. The governance mechanism works based on a Proof of Stake model, based on prediction markets.

Perhaps the most interesting feature is the implementation of Oracle machines. Which will enable you to connect real world data to smart contracts. The sky is literally the limit. Think financial applications, supply chain management, information markets, insurance and even the gaming industry.

In summary

1) Aeternity has lightning fast off-chain transactions. This gives more security and scalability.

2) Hybrid of PoW (consensus, mine on any devices) + PoS (governance).

3) Oracle machines – connect any real world data to smart contracts easily: elections, sports events, gold and oil prices, etc. It could be applied even to IoT.

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