A hybrid consensus approach is used by a blockchain network, combining both Proof of Work and Proof of Stake.
What Is the Aeternity Blockchain?
Aeternity’s hybrid approach allows smart contracts and oracles to process information off-chain for increased privacy, faster transactions, and lower fees.
One of the major aims of Aeternity is to address some of the blockchain scalability and privacy issues. It is being built by a team led by Yanislav Malahov, who has been involved in blockchain technology since the early days and was one of the original contributors to Ethereum.
Oracles are used to retrieve real-world data and feed it directly into smart contracts on the blockchain (e.g., information about weather conditions, flight times, sporting event results). They retrieve external data and submit it to a smart contract in the form of a transaction. In this way, they act as a bridge between off-chain data and on-chain applications.
For example, if you were to bet on a sporting event using a smart contract, you can use the oracle to automatically trigger payment when that event is over. The oracle would then go out into the real world, get the result of the game, and feed that information back into the contract so that it can release funds accordingly.
Aeternity’s rapid popularity is mostly due to its mobile-first design approach. Since it is using cutting-edge solutions to deal with blockchain scalability issues, it is becoming an aspiring network for dApps developers.