White Paper Cliff Notes - AION
Disclaimer: This is not meant as financial advice and is for entertainment purposes only.
Full disclosure: I currently own some AION as a swing trade.
TLDR: White paper asserts: “In the future, blockchains will federate data and value in a hub and spoke model similar to the internet.” I am far from convinced that this is true. It also sounds like the cart is ahead of the horse with their algorithm. Phrases like "Third Generation Blockchain" and "Proof of intelligence" makes me believe this project is overhyped, and under teched.
Problems outlined: Scalability, privacy, and interoperability.
“Just as in the early days of the internet, disparate blockchains networks have yet to truly realize the benefits of being connected. While specialized blockchain networks will and should be developed, being able to communicate on chain to other networks offers significant benefits, particularly if privacy and scalability can be maintained.”
“most blockchain systems have not been designed to store large amounts of data. (virtual machine supposed to address this issue)”
“Additionally, mined chains may not be suitable for enterprises because they become dependent on entities (miners) outside their control.”
Network
“3rd generation multi tier blockchain system designed to address the challenges”
“world’s first dedicated public enterprise blockchain”
“Core to our hypothesis is the idea that many blockchains will be created to solve unique business challenges, within unique industries. As such, the Aion Network is designed to support custom blockchain architectures, while providing a trustless mechanism for cross-chain interoperability.”
“In the future, blockchains will federate data and value in a hub and spoke model similar to the internet.”
“Aion is a third-generation blockchain network that will enable any private or public sector organization to:
• Federate: Send data and value between any Aion-compliant blockchain and Ethereum.
• Scale: Provide fast transaction processing and increased data capacity to all Aion blockchains.
• Spoke: Allow the creation of customized public or private blockchains that maintain interoperability with other blockchains, but allow publishers to choose governance, consensus mechanisms, issuance, and participation."
“The Aion multi-tier blockchain network is like a computer network, providing a protocol and standard for dissimilar systems to communicate.”
“The Aion network solves these challenges (POW) by:
• Allowing custom blockchain design—including different consensus algorithms and VMs—without sacrificing interoperability.
• Pioneering a new representative consensus that uses a proof-of-intelligence staking mechanism."
“Large amounts of resources have been spent trying to build the next perfect blockchain instead of working to integrate enabling the decentralized internet existing systems into an interoperable blockchain network.”
AION-1
“A state of the art blockchain that introduces a new paradigm of security, and fair, representative crypto-economic incentives.”
“Designed to connect other blockchains and manage its own robust applications, Aion-1 also provides the economic system that incentivizes interoperability in the ecosystem.”
Tokens
“AION tokens are the fuel used to create new blockchains, monetize inter-chain bridges, and secure the overall network.”
“the creator of an interchain transaction must pay a transaction fee for the communication cost using AION tokens”
“AION coins are the fuel used to create new blockchains, monetize inter-chain bridges, run cross-chain decentralized applications and secure the overall network.”
The token seems to have a use, but does the network?
AION v ATOMIC SWAP
According to Reddit
"Aion completely moves tokens between blockchains by deploying smart contracts on 2 different blockchains so they can:
- Burn a certain amount of tokens on Blockchain A
- Mint that same amount of tokens on Blockchain B
Atomic Swaps:
Transfer value only
Off-chain solution that uses the lighting network
Major limitations such a settlement times.
AION interoperability:
Transfer both value & logic which allows inter-chain communication
The Aion-1 mainchain has Virtual Machine (AVM) which gives Aion 2 major advantages over other interoperability projects:
- Instant Finality: The Aion-1 VM has parallel transaction processing to make sure Aion-1 doesn't become a bottleneck for performance while routing transactions between blockchains since they have different confirmation times.
- Interoperable Dapps: The Aion-1 VM can host Dapps that read & trigger logic between different blockchains: IF THIS happens on blockchain A . THEN THAT should happen on blockchain B"
Back to the whitepaper
“AION is a connecting network. Specifically, a connecting network should provide the following core functionalities:
• Route messages between different blockchain networks through a common bridging protocol that involves translation and propagation of the message, which must be considered final.
• Provide decentralized accountability.
• Provide a bridging protocol.”
“Point-to-point connections such as inter-blockchain relays or purpose-specific networks such as BTC Relay exist as central hubs.”
“An interchain transaction is a trust-free message between blockchain networks
Interchain transactions allow any connected blockchain networks to exchange information, like computers on the internet.”
“the creator of an interchain transaction must pay a transaction fee for the communication cost using AION tokens”
“ Privacy sensitive information applications could choose to encrypt the data if necessary.”
“Anyone can join a publicly-available bridge by pledging stake towards it"
"For a bridge to be considered valid, a minimum total stake is required.”
“The future of the internet will not consist of a single winner, but an ecosystem of decentralized layers operating on and collaborating across numerous blockchain protocols.”
“Allow the creation of customized public or private blockchains that maintain interoperability with other blockchains, but allow publishers to choose governance, consensus mechanisms, issuance, and participation.”
“At the root of the Aion network is a purpose-built, public, blockchain called Aion-1.
- Designed to connect other blockchains and manage its own robust applications”
Team
“Matthew Spoke, CEO of NUCO and board member of EEA.”
• 3,927 Twitter Followers (includes Andres Antonopolis)
• "Having spent more than four years working exclusively in the blockchain space, I've committed my professional career to seeing this technology achieve its potential within enterprise markets. I've had the pleasure of working closely with some of the world's foremost leaders on this topic"
• "Nuco is an enterprise software company building modular, secure, and scalable blockchain networks for complex, regulated markets."
• "Enterprise Ethereum Alliance. February 2017 – Present (1 year 4 months)"
“Jin Tu, AION CTO, has over 15 years of experience in enterprise engineering, most recently at Morgan Stanley.”
I really like that they both have experience in regulated markets.
Red Flags
“Utilize a optimized version of the Equishash proof-of-work algorithm (Equihash2109) while we continue to design and develop our hybrid consensus system”
-cart appears to be ahead of the horse
Vitalik was listed as an advisor when Ian Balina released his Youtube review on Sept 26th.
Vitalik sent out this Tweet on September 25th:
Please note I am not implying that Ian Balina intentionally misled his audience. I think it was miscommunication within Nuco/AION/Ethereum Enterprise Alliance.
Using Vitalik’s name when he is not an advisory looks very bad and leaves me with a suspicious feeling about the company.
In the wild west of cryptocurrency it usually only takes one red flag to keep me away.
Technical Analysis
Everyone who is late to the game is looking for the ‘next Bitcoin’. Hopefully you stick around long enough to realize that there is no ‘next Bitcoin’. That being said, there will certainly be a ‘next bubble’.
I thought this thing was primed for the next run after breakout #2. That was confirmed after it supported the breakout on the first pullback. Since then it has completely deflated : (
It needs to get above 0.00038 before I will be bullish again. Until then I will keep holding onto my bags.
Comment if you have something to say. Smash the like if you are still reading and definitely finger that follow!
Click here to read up on QASH!
Here for the BTC:USD 4 hour chart DAILY UPDATE
Here for the 0.1 > 1 BTC Trading Challenge!
And you definitely don't want to miss the next Gold Bubble!