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Review on Aeternity by Mason Michaud
Aeternity’s state channels mean that many transactions will take place off…
Aeternity’s state channels mean that many transactions will take place off chain therefore users will not be required to pay AE tokens to the miners for these transactions. This is an interesting dynamic since it means token holders are required to hold less of the token to make the same number of transactions (implying there would be less demand) however it also increases the utility of the network (suggesting this should add value to the tokens). The same arguments can be made for the increase in main chain transactions/second expected for Aeternity.
Pros
- Aeternity has no plans to move to full PoS. ETH will have to be locked to secure the network & earn fees, the mechanism will not exist in Aeternity. In a rational market I’d assume this was already priced into Ethereum but this is crypto so it’s not rational at all.
Cons
- AE will act much like ETH does and derives value for most the same reasons. It’s basically a fuel that powers transactions on the Aeternity blockchain. There are however a few significant differences that could lead to differences in how AE is valued.
