What Is Conflux? All You Need to Know About CFX

Blockchain technology has revolutionized the way we think about data and trust, but it is not without challenges. One of the biggest challenges facing blockchain developers is the “blockchain trilemma.” This trilemma suggests that blockchain networks must balance three competing priorities: security, scalability, and decentralization. Unfortunately, it is difficult to optimize all three of these priorities simultaneously.

In the early days of blockchain, most networks relied on a consensus mechanism called Proof of Work (PoW), which is notoriously very secure (see Bitcoin), but for many considered slow and resource-intensive. However, in recent years, there has been a shift towards a different consensus mechanism called Proof of Stake (PoS), which is faster and more energy-efficient.

Conflux (CFX) is a blockchain platform that aims to address the blockchain trilemma by using a hybrid consensus mechanism that combines PoW and PoS. By leveraging the strengths of both mechanisms, Conflux is able to achieve higher levels of scalability and security while maintaining a decentralized network.

What Is Conflux (CFX)?

Conflux (CFX) is a public blockchain that originated in the research lab of Turing Award recipient Dr. Andrew Yao at Tsinghua University. The blockchain platform was founded in 2018 by a group of researchers from the University of Toronto, led by Dr. Fan Long. They were inspired by the shortcomings of existing blockchain technologies and set out to create a platform that could achieve higher levels of scalability, security, and decentralization.

The team’s progressive research provided a solution to the ‘blockchain trilemma’ problem with a novel Tree-Graph consensus mechanism that optimizes security, scalability, and decentralization. In 2018, the Conflux Foundation was formed, and a regulatory-compliant fundraise was completed to build an open infrastructure based on this breakthrough consensus mechanism. The foundation aims to advance blockchain education and research through the Tree-Graph Research Institute, which has partnered with the government of Shanghai, and the Key Laboratory of Blockchain Infrastructure & Applications, which has partnered with the government of Hunan.

Conflux has expanded its global operations and community with a diverse distributed team of more than 50 members across over four continents, including offices in Toronto, Canada, and Lagos, Nigeria. The core leadership of Conflux Network is composed of prominent researchers, distinguished scientists, and business leaders with backgrounds from some of the top universities in the world.

In 2019, Conflux launched its mainnet (to be developed in three different phases), becoming the first public blockchain in China to use a PoW/PoS hybrid consensus mechanism. Since then, the platform has continued to grow and has gained support from a wide range of partners and investors. With these improvements, Conflux aims to become a leading blockchain platform for decentralized applications (dApps) and enterprise use cases.

How Does Conflux Work? The Tree-Graph Consensus Mechanism

Conflux uses a novel consensus mechanism called Tree-Graph to improve its scalability, security, and decentralization. The Tree-Graph consensus mechanism is a combination of a Directed Acyclic Graph (DAG) and a chain-based blockchain, which optimizes the three key properties of blockchain - scalability, security, and decentralization.

In the Tree-Graph consensus mechanism, each block is represented by a directed acyclic graph, and the blocks are connected to each other through their parent-child relationships, forming a tree-like structure. Each tree has a unique root node, and each node in the tree represents a block. The blocks are connected to each other through their parent-child relationships, forming a tree-like structure.

The Tree-Graph consensus mechanism uses a Proof of Work (PoW) consensus algorithm to select the next block and a Proof of Stake (PoS) consensus algorithm to validate the transactions in the block. This hybrid consensus algorithm allows for a higher level of security and decentralization while maintaining high scalability.

Conflux is also Ethereum Virtual Machine (EVM) compatible, meaning that its application layer can support smart contracts written in Solidity, making it easier for developers to build dApps on the platform.

Conflux, like Ethereum, operates using an account-based model where each account is associated with a balance, and smart contracts contain byte codes and an internal state. Conflux supports a modified version of Solidity, which is the main contract language used in Ethereum, as well as the Ethereum Virtual Machine (EVM) for its smart contracts. This means that smart contracts from Ethereum can easily migrate to Conflux.

In addition to supporting the EVM, Conflux also has its own virtual machine called Conflux Virtual Machine (CVM). The CVM is optimized for the Tree-Graph consensus mechanism used by Conflux, which allows for faster and more efficient execution of smart contracts. This makes Conflux a more flexible platform for developers and enterprises, as they can choose to use either the EVM or the CVM depending on their needs.

To summarize, Conflux (CFX) offers several advantages over other blockchain networks, such as:

• Parallel transactions that allow the network to process up to 4000 transactions per second.
• A DAG consensus protocol that ensures block validation and order, making the blockchain more stable.
• Smart contract capabilities that allow for the creation of decentralized applications.
• Support for multi-chain collaboration, enabling developers to build multi-chain decentralized applications.
• Low transaction fees due to the network’s high scalability.

Conflux Use Cases

Conflux has established various collaborations with the Chinese government to advance blockchain education, research, and development. One of the most important is the Tree-Graph Research Institute, created in partnership with the government of Shanghai. The institute is focused on research related to the underlying infrastructure of the Conflux public blockchain system.

In addition, Conflux has partnered with the Key Laboratory of Blockchain Infrastructure & Applications, which is supported by the government of Hunan. This partnership aims to explore blockchain technology, promote blockchain-based industrialization, and cultivate blockchain talent.

Moreover, in 2021, Conflux partnered with the Shanghai government to develop a new blockchain platform that can be used for the city’s administrative services, such as issuing certificates and managing data related to urban planning, social security, and more.

These collaborations with the Chinese government showcase Conflux’s commitment to promoting blockchain technology in China and its dedication to developing practical use cases for blockchain in government services. For example, using blockchain technology, institutions can create tamper-proof records of transactions and interactions between different parties, which can help to prevent fraud, reduce errors, and increase efficiency. In addition, by leveraging smart contracts, institutions can automate many of their processes, reducing the need for manual intervention and speeding up service delivery.

Overall, by adopting blockchain technology such as Conflux, institutions can improve the security, transparency, and efficiency of their services, while also unlocking new opportunities for innovation and growth.

What Is the CFX Token?

CFX is the native utility token of the Conflux protocol that is used to secure the network. Its maximum supply is 2.6 billion units (March 2023).

As with other blockchain-based cryptocurrencies, CFX can be bought, sold, and traded on various cryptocurrency exchanges. It can also be used to pay transaction fees on the Conflux network, which are generally lower than those on other major blockchain networks.

In addition to its utility, CFX also plays a role in securing the Conflux network. Miners are rewarded with newly minted CFX tokens for verifying transactions and adding blocks to the blockchain. This incentivizes miners to operate honestly and helps to ensure the integrity and security of the network.

The CFX token also serves multiple purposes within the Conflux ecosystem. It provides incentives for users to engage in economic activity that generates value, and allows CFX holders to participate in governance by voting on important network decisions. Additionally, the token can be staked, with users receiving rewards at a fixed rate of 4% for staking their tokens. These rewards are added to the user’s holdings when they un-stake their tokens.

Conflux Ecosystem

Conflux is a relatively new platform, and its ecosystem is still in the early stages of development. However, its ecosystem consists of some tools, applications, and services that are built on top of the Conflux blockchain. Here are some examples:

• Fluent Wallet: A non-custodial, open-source cryptocurrency wallet designed to provide a seamless user experience for managing and storing various digital assets. The wallet is built on the Conflux network, but it also supports other networks such as Ethereum, Binance Smart Chain, and more.

  Fluent Wallet allows users to manage multiple wallets, swap tokens, and view transaction histories all in one place. Users can easily send and receive CFX and other tokens directly from the wallet, and the wallet’s security is strengthened by the fact that private keys are never shared or stored with third parties.

• MoonSwap: A decentralized exchange (DEX) built on top of Conflux that allows users to swap cryptocurrencies in a decentralized manner. The platform aims to provide fast and efficient trading experiences to its users with low fees and slippage rates. MoonSwap leverages Conflux’s Tree Graph (TG) technology to ensure transactions are confirmed within 23 seconds, while achieving a throughput of up to 6,000 transactions per second (tps). After revealing its asset migration procedure, the platform introduced the Moon token in September 2020, enabling owners of all Ethereum-based assets locked in MoonSwap to transfer their holdings to Conflux cross-chain assets (e.g. ETH to cETH).

• ShuttleFlow: A cross-chain asset transfer protocol that enables users to transfer tokens between different blockchain networks. ShuttleFlow is built on top of the Conflux network and allows for the movement of tokens between Ethereum and Conflux blockchains. One of the key features of ShuttleFlow is its ability to provide liquidity across different blockchain networks. By enabling cross-chain transfers of tokens, ShuttleFlow allows users to take advantage of the liquidity on different networks. This can help to reduce the volatility of tokens and increase the overall liquidity of the market.

These are just a few examples of the growing ecosystem of applications and projects being built on Conflux. As the network continues to develop and gain traction, we can expect to see even more innovative use cases emerge.

Source: Conflux Network Official (Twitter)

Conflux TVL - DefiLlama

Is Conflux a Good Investment?

Conflux has gained attention for its high scalability and innovative consensus mechanism, making it a promising project in the blockchain space. Its collaborations with the Chinese government and various companies also indicate potential real-world use cases for the platform.

However, as with any investment, there are risks and uncertainties involved, especially in the volatile cryptocurrency market. It is important to consider the potential risks and conduct thorough research before making any investment decisions. Additionally, the success of Conflux relies on widespread adoption, which may take time and effort. While the project shows promise, there is still much work to be done to establish a strong user base and ensure long-term sustainability.

How to Own CFX?

To own CFX, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy CFX.

News on Conflux

According to a tweet published by Conflux Network Official, Conflux has partnered with China Telecom to develop a blockchain SIM (BSIM) card. The BSIM will store digital private keys and allow users to transfer funds by calling upon a digital signature. A “one-click direct check” function will allow users to monitor transaction information in real time. The BSIM will also store non-fungible tokens (NFTs), with support for transfers and an exchange function. The card will have 10-20 times more storage space than regular SIM cards, enabling optimized access to decentralized applications and digital communities. The BSIM will be piloted in Hong Kong later this year. Conflux is a layer-1 blockchain operating on a hybrid proof-of-work and proof-of-stake consensus, and is the only regulatory-compliant public blockchain in China.

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