Aeternity’s main advantage is that it enables high bandwidth transactions. The platform is a scalable blockchain and offers decentralized oracles. The platform is not free for use. Participants must buy and then spend the native currency token, called Aeon. Any resources consumed on the platform as well as system fees and smart contracts are paid through the token. Contracts on Aeternity run off-chain and in private channels between the parties involved. The Oracle machine brings data from outside sources to use in the contracts, and it also acts as a voting predicator and verification purposes. The fact that state channels are set off-chain allows them to operate more efficiently and with greater privacy. This is very useful, as only the two parties who issued the contract have access to the data. Any sensitive business information is protected. This also increases the usability of smart contracts as the higher level of privacy, even operations that require sensitive information are secure. This network relies on proof-of-work as well as proof-of-stake with the former establishing consensus and the latter controlling the governance of the ecosystem.

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