Conflux is a Proof-of-Work (PoW) blockchain network that allows the parallel processing of blocks and transactions, while eventually forming a final serial chain. Conflux is a new PoW network with a Turing-complete smart contract language similar to that of Ethereum. The Conflux network provides significant performance improvements with its processing of parallel blocks in a Directed Acyclic Graph (DAG).
At its core, blockchain technology is an infrastructure solution that allows the secure transfer of economic value and execution of programming state/storage, without a trusted third party. To address the fairness attack challenge, Conflux assigns the block reward in a way that eliminates the winner-take-all characteristic of mining. Instead of competing for the longest chain, miners in Conflux receive block rewards for all the blocks that they generate, albeit with some penalty mechanisms that encourage following the consensus protocol.
Similarly to Ethereum, Conflux operates with an account-based model that every normal account associates with a balance, and each smart contract account contains the corresponding byte codes as well as an internal state. Conflux supports a modified version of Solidity (the main contract language in Ethereum) and Ethereum Virtual Machine (EVM) for its smart contracts so that smart contracts from Ethereum can migrate to Conflux easily.
A transaction in Conflux refers to a message that initiates a payment transaction or deploys/executes smart contract code. Each block consists of a list of transactions that are verified by the proposing miner. Each node maintains a pool of verified, received transactions that have not yet been included in a block. Miners compete with one another by solving PoW puzzles to include transactions into blocks.
Similar to Bitcoin and Ethereum, Conflux adjusts the PoW difficulty to maintain a stable block generation rate. Each node also maintains a local state constructed from the received blocks. The Conflux consensus algorithm operates with a special Directed Acyclic Graph (DAG) structure called TreeGraph. Unlike Ethereum which only accepts transactions on a single chain into its ledger, the Conflux consensus algorithm safely incorporates and processes transactions in all concurrent blocks.
The Conflux Foundation is a non-profit entity established by Conflux to make adjustments when the allocation of resources deviates from equilibrium, to provide incentives to overcome the cold start problem and to promote participation/development in the network in the early stage.
Who are the founders of Conflux (CFX)?
The company is led by its founder, Fan Long, a talented programmer in blockchain technology and cybersecurity. Long’s two co-founders are YuanJie Zhang, Ming Wu (CTO), and the company’s research director, Guang Yang.
What is Conflux (CFX) used for?
Payment
Conflux plans on paying users interest to whom their tokens are on hold. The issued tokens exist in two forms: liquid and illiquid. In the liquid form, they are “free,” and can be immediately transferred and used on the Conflux chain. These liquid tokens receive no interest. This state is similar to money kept in a “chequing” or “current” account at a bank: in most Western countries today such funds do not earn interest but they are available for immediate use.
Stake
Users can also designate their tokens as “stake”. In that case, they are locked, not available for immediate use, and therefore illiquid. Such staked tokens receive interest payments in the form of newly minted tokens. This interest per token accrues while the token is staked and it will be paid at the time when the user unlocks their token and converts it to the liquid form.
Governance
Conflux Foundation plans to gradually transfer the governance of the Community Fund and the Ecosystem Fund to the DAO of the Conflux stakeholders.
Grants and Bounties
Conflux Foundation offered bounties and grants in the form of FC (Fan’s Coin) tokens to those community members who made contributions to Conflux before its launch.
How is Conflux (CFX) unique?
It contrasts other well-known networks, such as Bitcoin and Ethereum, which process blocks strictly one by one. Parallel processing creates economic incentives for miners that are notably different from serial chains.
Conflux also seeks to overcome the problem of the unpaid smart-contract space occupation. In Ethereum, when introducing a new contract, a user merely pays at the time of the inclusion of the code in the chain whereas the community as a whole faces the burden of keeping the contract in storage. Conflux introduces ongoing costs of contract maintenance which give users an economic incentive to avoid wasting resources.
To provide intrinsic value, Conflux seeks to attract users that actively use the network for value-added services. Conflux believes there must be no barriers to entry for those who make meaningful contributions. This is why Conflux is a permissionless network with economic-driven governance mechanisms that incentivize community contributions to ensure a secure, stable, and predictable environment for commercial activities.
To address the space congestion challenge, Conflux requires users to bond native tokens into storage to occupy space, which implicitly creates a disincentive to occupy space unnecessarily. The disincentive stems from the payment of interest on existing tokens in the system and the interest on the bonded storage is paid to miners instead of the users to create a long-term income for the miners.
How many Conflux (CFX) coins are in circulation?
The initial number of tokens is 5,000,000,000 (5 billion). All of these tokens are locked at the launch of the main net and will then be released gradually, in monthly intervals. These initial tokens will be divided between the following parties:
Private Equity Investors: Up to 600 Million CFXs will be allocated to our private investors. In the last investment round, CFX tokens were sold at 0.1 USD per CFX.
Foundation Holdings: 200 Million CFXs plus any unsold CFXs in the previous category will be allocated to support the long-term financial need of Conflux Foundation. These tokens will be unlocked monthly over 2 years.
Genesis Team: 1,800 Million CFXs will be awarded to the founding team including the IIIS team (of Tsinghua University) and Alt-Chain Technologies shareholders (where Conflux spins off from), Conflux Foundation employees, and advisors. The Genesis team’s tokens will be unlocked over 4 years.
Community Fund: 400 Million CFXs will be used for marketing and community building. These tokens will be unlocked over 4 years.
Ecosystem Fund: 2,000 Million of CFXs in the Genesis Issue will become an ecosystem fund to solve cold start problems and to invest in promising dApp projects that run on the Conflux network. These tokens will be unlocked over 4 years.
How is the Conflux network secured?
The Conflux network simulation is run on 10000 nodes. One of them is the attacker which will withhold a generated block for a certain period. In the simulation, normal nodes have a network delay (4.1 seconds on average). The attacker, however, has the capability of instantly receiving and sending its block to all other nodes. The simulation is run for 2000 blocks and measures the reward ratio the attacker receives compared to the normal honest strategy for the last 1000 blocks under different block generation power and the block withholding period.
The results show that the attacker consistently receives less reward than he would with the normal honest strategy (i.e., the reward ratio is less than 1). The longer she withholds the blocks, the less reward she will receive. More computation power will help the attacker to receive more reward, but even with 40% of the computation power of the whole network, the attacker would still get more reward if he just participates.
How do I buy Conflux (CFX)?
The CFX token can be used for a wide range of purposes, like staking and governance.
CFX tokens can be easily purchased by following the following steps.
Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy CFX through your trading account by swapping with BTC, ETH, or USDT pairs.
Which Cryptocurrency Wallet Supports Conflux (CFX)?
The PTPWallet platform supports many cryptocurrencies, with CFX soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.
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