1 Level
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2 Karma
Review on Aeternity by Cerys Jordan
For many business applications it's crucial to have transactions which are not…
For many business applications it's crucial to have transactions which are not recorded in public. Smart contracts executed in state channels touch the blockchain only in the case of disagreement, acting like a self-arbitrating crypto court.
Pros
- State channels are private connections between smart contract users where the state of smart contracts are updated in private channels that are separate to the main Aeternity blockchain. This is a breakthrough technology for two reasons. Firstly the constant updating of smart contracts uses a lot of storage space within blocks that can otherwise be off-chain to relieve the network. Secondly, smart contract participants can create trustless agreements between each other and exchange confirmed value in a private setting without having to broadcast their business on a public ledger. The use of state channels also allows for smart transactions to be processed immediately between participants rather than having to wait until a block on the blockchain is closed and confirmed. Smart contracts are only recorded on the public blockchain when a dispute is resolved and as smart contracts are kept off the blockchain running smart contracts is low cost.
Cons
- Low cost By leveraging state channels as the default way to run smart contracts, æternity becomes the most efficient Turing-complete blockchain and thus enables new forms of commerce via its low cost transactions.
