Popular cryptos
Aergo
Download our cryptowallet
About Aergo
Aergo is an enterprise-ready blockchain platform that aims to bridge the gap between public and private blockchains. Created by Blocko, a leading enterprise blockchain company, Aergo utilizes a hybrid architecture to combine the security of public blockchains with the flexibility of private blockchains. The goal is to provide a scalable and easy-to-use platform for building decentralized applications and enterprise blockchain solutions.
History and Background of Aergo
Aergo was first announced in mid-2018 and had its mainnet launch in April 2019. The platform is developed by Blocko, a South Korea-based company that has built over 20 enterprise blockchain networks since 2014. Leveraging this experience, Blocko set out to build Aergo as an open-source project designed for businesses.
Unlike other blockchain platforms that were later adapted for enterprise use, Aergo was built from the ground up with business needs in mind. The name Aergo comes from “Aergos”, which means “able to do” in Greek. This represents the project’s goal of creating an agile and capable blockchain for real-world adoption.
Key Features of the Aergo Platform
Aergo offers several key features that make it attractive as an enterprise blockchain platform:
- Hybrid Architecture – Combines permissioned and permissionless approaches to get the best of both private and public blockchains. This provides security and decentralization with speed and scalability.
- SQL Smart Contracts – Allows developers to write smart contracts using traditional SQL programming instead of unfamiliar languages. This improves accessibility.
- Delegated Proof-of-Stake – An efficient consensus algorithm that enables fast and inexpensive transactions. Staking incentives encourage network participation.
- Interoperability – The platform utilizes blockchain routers and bridges to connect with external blockchains like Ethereum. This facilitates cross-chain communication.
- Turn-Key Solution – Provides everything needed to build and deploy dApps rapidly. Includes identity, storage, and other services out-of-the-box.
Consensus Mechanism Used by Aergo
Aergo uses a Delegated Proof-of-Stake (DPoS) consensus mechanism. This allows token holders to stake their AERGO tokens and vote to elect “block producers” to validate transactions and secure the network.
The top 25 block producers by vote share are selected to validate each block. This makes the network fast, efficient, and able to process thousands of transactions per second. The incentives encourage community participation while allowing immediate transaction finality.
Aergo’s DPoS implementation also utilizes “trust score” to minimize centralization risks. Block producers with higher trust scores have greater influence in voting. This prevents collusion and encourages quality participation.
Smart Contracts and dApps on Aergo
Aergo supports building decentralized applications (dApps) and smart contracts through SQL programming. Developers can use familiar SQL syntax and existing code instead of learning a new language like Solidity.
The Aergo platform provides the ability to execute SQL smart contracts on-chain. These interact with blockchain states and external data to provide advanced logic and functionality for dApps. They process quickly and efficiently using Aergo’s distributed SQL engine and relational database model.
Several dApps have launched on Aergo such as marketplaces, games, prediction platforms and supply chain solutions. The simple deployment model allows rapid prototyping and testing before mainnet deployment.
Aergo’s Hybrid Architecture
A defining feature of Aergo is its hybrid architecture combining design aspects of both public and private blockchains. It consists of three layers:
- Public Open Chain – Permissionless base layer secured by DPoS consensus. Provides tokenomics and decentralization.
- Private Sub-Chains – Permissioned side chains that connect to the main chain. Adds scalability and privacy.
- Blockchain Hosting Service – Turn-key solution with SQL and services ready for dApp deployment. Easy to use.
This allows Aergo to offer the best of both worlds – the security and integrity of a public chain along with the performance and control of private chains. Users can choose between the layers based on specific needs.
The architecture solves problems like scalability, governance and interoperability encountered in many blockchain projects. It represents an evolution of blockchain design for practical business use.
Use Cases and Adoption of Aergo
Aergo provides a flexible enterprise platform suited for various industries and applications like:
- Supply Chain – Track global supply chains involving many stakeholders and integrate with legacy systems.
- Digital Identity – Securely verify, manage and exchange identity information using blockchain identifiers.
- Payments – Process payments in real-time with low fees and embed decentralized finance into applications.
- Healthcare – Manage sensitive medical data access and sharing across institutions and jurisdictions.
Use cases built on Aergo include Hyundai’s blockchain fleet management platform, Samsung’s membership and payments service, and partnerships with Oracle and Amazon Web Services. As the technology matures, broader enterprise adoption is anticipated across sectors worldwide.
AERGO Token and Tokenomics
The native token of the Aergo platform is AERGO. It is used to pay fees, secure the network through staking, and incentivize block producers. The total supply is 500 million AERGO, with about 56% currently in circulation.
AERGO holders can participate in staking and governance by voting for block producers. The tokens also allow access to advanced technical features. As adoption grows, increased utility should create demand and give AERGO tokens fundamental value.
The token economics uses an inflationary model with block rewards and transaction fees used to fund growth. The annual inflation rate starts at 10% and decays over time. The model encourages long-term engagement while avoiding excessive dilution of token value.
Conclusion
Aergo aims to spearhead the next generation of enterprise blockchains with a feature-rich platform tailored for business. Its hybrid design solves many common issues like scalability, governance and interconnectivity. This makes Aergo an attractive choice for companies exploring decentralized technology. With its production-ready tech and emphasis on practical utility, Aergo has the potential to gain significant traction in the coming years.
