Delving into Conflux Network (CFX) – A Comprehensive Crypto Deep Dive
Conflux Network is a Layer 1 blockchain that connects different decentralized economies across borders and protocols. In this article we take a look at its consensus, tokenomics and their recent surge to the top.
Conflux network is a Layer 1 blockchain that connects different decentralized economies across borders and protocols. As the only regulatory-compliant public blockchain in China, it offers a unique advantage for projects looking to build and expand in Asia. Conflux has gained attention for collaborating with well-known brands and government entities, such as Shanghai, McDonald's China, and Oreo, and expanding into Hong Kong's growing blockchain-friendly environment.
Using Tree-Graph technology, Conflux ensures a high level of security and can process around 4,000 transactions per second. Its native crypto currency is Conflux ($CFX). The platform has two spaces, Core Space and eSpace, which cater to different virtual machines and developers' needs.
This article will discuss Conflux's special features, such as its Tree-Graph ledger structure, unique consensus mechanism, and GHAST algorithm. We'll also explore its partnerships, like the one with China Telecom to launch Blockchain SIM cards (BSIM) for faster and more secure transactions for over 390 million mobile subscribers. Lastly, we'll examine how Conflux has integrated with Little Red Book (XiaohongShu), China's version of Instagram, allowing users to display NFTs minted on Conflux Network on their profiles, showcasing China's growing adoption of crypto and Web3 technologies.
Conflux uses a special consensus mechanism that combines Proof of Work (PoW) and Proof of Stake (PoS). Conflux's unique combination of Proof of Work (PoW) and Proof of Stake (PoS) consensus makes it more secure, fast, and decentralized. It can process many transactions quickly and confirm them within a minute. The PoS part helps protect the network from attacks where someone tries to take control and change the blockchain.
The PoW part of Conflux's consensus uses the Tree-Graph ledger structure and the GHAST algorithm, allowing it to process a high number of transactions – up to 3,000 per second (TPS). It can also confirm these transactions within 1 minute, all while keeping the same level of decentralization as Bitcoin and Ethereum.
Conflux uses a special way to organize and store data called a Tree-Graph ledger, making it faster and safer. Its consensus algorithm, called GHAST, helps nodes agree on the main chain of blocks and stop potential attacks.
Like Ethereum, Conflux supports smart contracts and uses an account model. Its design makes transactions more efficient by using memory better when accessing data in storage. This is important for investors because it shows that Conflux has the potential to grow and become a strong player in the blockchain space.
The Conflux blockchain has two environments, Core Space and Espace, which allow various virtual machines to run on the network. Having two spaces gives Conflux more compatibility and flexibility for developers and users.
The eSpace is a fully EVM-compatible space that follows the same rules as EVM and supports Ethereum RPCs, allowing Ethereum tools to be used directly on Conflux.
The Core Space is the original Conflux space. These two spaces are independent but can achieve atomic-crossing of CFX and data through the CrossSpaceCall internal contract. This contract allows CFX transfers between the two crypto spaces.
Having two separate spaces enables smart contracts to be deployed on either space or both, depending on the use case. Additionally, the CrossSpaceCall internal contract allows crossing of CFX and data between the two spaces, ensuring seamless interaction and interoperability
To transfer assets and data between Core Space and eSpace in Conflux, you can use the CrossSpaceCall internal contract. You can use tools like Fluent and MetaMask to facilitate these transfers. Fluent provides a user interface for transferring assets between Core Space and eSpace, while MetaMask can be used to verify the receipt of funds in the respective spaces
Core Space and eSpace are logically independent spaces with transactions, account status, and contracts. They share the same ledger (chain) for underlying data storage. A block may contain transactions from both Spaces, which are only differentiated by the transaction type when transactions are executed. Each will only impact the account status in its own Space.
At the center of Conflux's value system is its native token, CFX. Each CFX token consists of smaller units called drips, similar to Gwei on the Ethereum network or Satoshis in Bitcoin. A single CFX crypto token contains 10¹⁸ drips. To send a transaction on the Conflux Network, a small amount of drip is paid as a transaction fee, awarded to system maintainers (miners).
Conflux Network has 5 billion pre-mined CFX tokens. These tokens reward builders and contributors to the ecosystem. They are distributed as follows:
- Private Equity Funders: 12% of tokens, unlocked over two years
- Genesis Team: 36% of tokens, unlocked over four years
- Community Fund: 8% of tokens, unlocked over four years
- Ecosystem Fund: 40% of tokens, unlocked over four years
- Public Fund: 4% of tokens, unlocked monthly for two years
Conflux's tokenomics play a crucial role in growing their ecosystem by incentivizing various stakeholders and supporting ecosystem development. The Conflux Network has allocated 2 billion CFX tokens (40% of the total supply) for the Ecosystem Fund, which is unlocked over four years. This fund is used to solve cold start problems, invest in promising dApp projects, and sponsor initiatives that run on the Conflux network.
Additionally, Conflux has a Community Fund of 400 million CFX tokens, which is used for marketing and community building. The network also offers staking rewards, mining rewards, and incentives for DeFi projects, such as the eSpace Liquidity Incentive Program. This program helps bootstrap liquidity and supports existing DeFi projects looking to scale their Total Value Locked (TVL) on Conflux.
Conflux's tokenomics are designed to encourage community contributions, support ecosystem growth, and ensure a secure, stable, and predictable environment for commercial activities
Conflux, the only regulatory-compliant public blockchain in China, has gained traction for its collaborations with well-known brands and government entities, like Shanghai, McDonald's China, and Oreo. It has been expanding into Hong Kong, where a more hospitable environment for blockchain is emerging. Conflux's Tree-Graph public chain offers impressive performance, with over 3,000 TPS and 5,000 nodes.
Recently, Conflux partnered with China Telecom to launch Blockchain SIM cards (BSIM) for faster and more secure transactions, making Web3 more accessible for China Telecom's 390+ million mobile subscribers. The BSIM card offers increased storage space and computing power compared to traditional SIM cards and better security for users' private keys.
In addition, Little Red Book (XiaohongShu), China's version of Instagram, has integrated Conflux Network to enable users to display NFTs minted on Conflux on their profiles. This integration highlights China's pro-NFT stance and large internet industry players' growing adoption of Web3.
Conflux is a promising blockchain network gaining popularity, especially in Asia. Conflux works well with Ethereum, making it easy for developers to use.
Recently, Conflux has partnered with big companies and governments, like Shanghai, McDonald's China, and Oreo. It is also expanding into Hong Kong, where the environment is friendlier for blockchain technology. Conflux's fast and powerful system can handle many transactions at once.
Conflux also teamed up with China Telecom to create special SIM cards for mobile phones, making using blockchain technology easier. Additionally, Conflux was integrated into Little Red Book, a popular Chinese app similar to Instagram. This shows that big internet companies in China are starting to support blockchain and Web3 technology.
In short, Conflux is a growing blockchain network with increasing support from Hong Kong. Its innovative technology and partnerships with major players could make it the next big thing in the blockchain world.
Read further about the top Conflux ecosystem projects.
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