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Conflux: Ambitious Chinese Crypto Project
2021-09-14 • Dikemaskini
About Conflux
Conflux is an open blockchain network with an economic incentive-based governance mechanism designed to reward community members who contribute to ensuring a safe, stable, and predictable environment for economic activity. Conflux is focused on developing decentralized applications (dApps), creating smart contracts, and making simple payments. In simple words, Conflux is an exact copy of all known Ethereum, but more scalable and flexible.
Conflux history
Conflux is headquartered in Beijing, China. The Financial office was registered in Singapore in 2018.
Developers raised initial funds by selling the part of 1 billion CFX tokens issued on the Ethereum blockchain. After the launch of the main Conflux network, the developers generated 5 billion CFX tokens (most of them are still frozen) and launched the mechanism of additional emission of CFX coins (internal tokens of the Conflux network) available to earn by miners and stakers.
CFX is the main fuel of the Conflux platform and is used as a tool to interact with solutions in the Conflux Network ecosystem. Major CFX holders include venture giants such as Sequoia China, Huobi Group, Shunwei, and Rong 360.
Token holders receive a reward for their storage depending on the staking time.
Conflux features
The Conflux network has many advantages.
- The throughput is 4000 transactions per second (for comparison, Ethereum has 15).
- Proof of work algorithm, which means the cryptocurrency is available for mining on video cards.
- Unlike many other blockchains (for example, Bitcoin, Ethereum), in which blocks are generated sequentially, one after another, in the Conflux blockchain network, parallel construction of a blockchain and transactions is possible.
- Ethereum virtual machine support, so smart contracts can be ported from Ethereum to Conflux Network.
- Block generation time - 2 blocks per second (172, 800 blocks per day).
- Annual inflation is at 8.83%.
Conclusion
The main goal of the Conflux blockchain network is the development of digital technologies. Creators used Bitcoin and Ethereum’s developments as well as other innovative technologies to create a high-quality cryptosystem.
Despite this, Conflux is a young project, comparing with such giants as Litecoin, Bitcoin, Ripple, and Ethereum, which already recommended themselves as a reliable cryptosystem. That’s why we suppose the risk of trading CFX remains on a high level and suggest trading more sustainable coins such as XRP, ETH, BTC, and LTC.
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