Aion: Practical Decentralization
Aion is a 3rd generation, multi-tier blockchain that was designed to address unique industry associated with the mass adoption of cryptocurrency: scalability, privacy, and interoperability in the blockchain networks.
Multiple businesses are looking into blockchain solutions to tackle business challenges like supply chain logistics, IoT, fundraising, messaging, payment data storage, etc. Yet, current solutions don’t allow for dissimilar systems to interoperate (ie. communicate, decypher logic, and pass-on value).
From its conception, Aion was designed to erect a standard infrastructure that allows interoperability between public and private, or custom build, networks. This vision would allow networks to communicate with each other across the same protocol, thus creating a contiguous value chain. The team working to make this mission a reality is comprised of over 50 people spanned across Canada, China, and Barbados.
Interchain Transactions and Bridges
Bridges are the mechanisms that enable interchain transactions: for blockchain networks to exchange information, value, and logic. Interchain transactions are born on a source blockchain and then processed and sent to the target blockchain by Aion’s bridges.
How do bridges allow for interoperability across networks? A bridge is a communication protocol that facilitates communication between the source and target networks by ensuring translation of protocols. At the same time, it maintains accountability by auditing the integrity of the transaction as a whole without interpreting the data.
How does the network ensure security? To achieve consensus, Aion bridges will use standard PoW (Proof of Work) confirmations and consensus protocols that are implemented above both networks participating in the bridge. On top of that, bridges will have to have a healing feature that re-synchronizes the nodes when they diverge from the main chain in either network. This ensures that consensus can be achieved and interchain transactions are successfully processed.
The Aion team asserts that their first bridge will be built between the Aion and Ethereum networks to transfer requests from the AION ERC20 Token into Aion Coins. Thereafter, future bridges will be determined and prioritized based on community input.
Do these transactions across bridges come at a cost? Each interchain transaction creator must pay a transaction fee for the interaction cost. Thus, Aion tokens are the fuel that powers the generation of new blockchains, inter-chain bridges, and security within the Aion network.
Therefore, the Aion token inherits value from the degree of demand that is realized by it within the Aion network.
What are the fundamentals behind Aion’s valuation?
The future valuation of Aion will be derived from a number of variables pertaining to the development team and market forces:
- Demand for sending data and value between any blockchain in the connected Aion ecosystem, as signaled by investment into and milestones achieved by relevant blockchains;
- Demand for faster provision of processing and increased data capacity to all connected blockchains, as signaled by the increase in transactions and network competition achieved by each of the associated blockchains;
- Demand for the the creation of customized public or private blockchains on the Aion network;
- Execution and adoption of enterprise blockchain projects, from firms spanning IBM to Microsoft, that require interchain interaction;
- Development team’s ability to achieve their objectives surrounding interoperability, scalability, increased efficiency, and custom blockchain offerings would encourage interchain transactions and drive demand for Aion;
- Ongoing strength of Aion’s mining network hashrate could fuels demand for the crypto; and
- Widespread adoption of cryptos by institutions and consumers encourage growth in cryptocurrency markets.
How can you get Aion?
You can buy Aion on an exchange, obtain Aion as payment for a transactions, or mine Aion. Seeing as we’re miners by trade, we want to talk more about mining.
Aion is one of the latest addition to our services as a pool operator. We are pleased to continue to provide our miners with an enhanced miner experience and to support the Aion community. For those of you who are unfamiliar with Luxor, we are a altcoin pool built for high quality cryptocurrencies. We originally started with Sia and Decred and recently joined the LBRY, Loki, Monero, Zencash and Zencash communities.