Info Tech: The generation blockchain network

The Third Generation Blockchain Network

A multi-tier blockchain system designed to address unsolved questions of scalability, privacy, and interoperability in blockchain networks.

AION-1 OPERATIONS

The Aion multi-tier blockchain network is like a computer network that provides a protocol and standard for dissimilar systems to communicate. In addition to information, the Aion network can pass logic and value amongst participating blockchains. Review the Aion technical overview to explore these concepts in more detail.

Aion-1 is the genesis implementation of the connecting blockchain in the Aion network. It provides the critical functionality of operating as a sort of router between other blockchains, as well as managing applications that connect to several blockchains. It is designed to have a fair, distributed, open blockchain architecture that is capable of fulfilling the requirements specified in the multi-tier blockchain network architecture. To meet operational scale and enable wide participation in its consensus validation process, Aion-1 will also employ a representative consensus model.

AION MULTI-TIER BLOCKCHAIN NETWORK

The Aion multi-tier blockchain network is like a computer network, providing a protocol and standard for dissimilar systems to communicate. However, in addition to information, the Aion network will pass logic and value among participating blockchains to create a contiguous value chain where every transaction occurs on-chain, with logic and value passing among chains as freely as liquid assets.

These infrastructures, protocols, and concepts will work together to guarantee transmission from an origin to its destination through interchain communication. The value of these technologies is that they enable one blockchain to transact with another blockchain, as well as one blockchain to transact with every connected blockchain.

Connecting Networks

Connecting networks are networks that facilitate interchain communication and interchain transactions between multiple private or public blockchain networks. Connecting networks are defined by requirements that specify their role within the context of the Aion.

Routing

The routing of interchain transactions is a multi-phase process. In each phase, the validators verify the transaction and reach consensus on whether the transaction should be forwarded or rejected. If a transaction gets rejected at any point, any state change as a result of the interchain transaction will be reverted, at least in the connecting network. The routing path can be divided into two subpaths: the forward path and backward path. In the forward path, an interchain transaction flows from the source chain all the way to the target chain. In the backward path, a confirmation of the interchain transaction is passed back.

Network consensus and validation

This consensus model will allow Aion-1 participants to back validators who actively participate in the consensus process, enabling a drastic increase of participation beyond what conventional consensus algorithms would technically allow for. The conceptual design behind a representative consensus model is similar to that of a representative democracy, in which candidates register themselves and are elected based on the votes they receive from their constituents. However, in Aion-1, validators must be supported by backers, and each backer receives a share of the validator’s reward. Additional detail regarding validation and backing in Mainchain operations can be found in our publications, available on.

Network Validators

Any node on Aion-1 can self-nominate and register to become a Validator, but they require sufficient backing before being accepted into the consensus process. One method of backing Validators is by staking AION tokens. Proportionate to their backing, participants staking these tokens share in the validation rewards generated in the consensus process. The network maintains and updates a network-wide registry of Validators. Validators only become active by being among the most backed Validators on the network.

Backing

Backing refers to either staking AION tokens or resources (proof-of-intelligence — see Aion’s website for more detail) towards a particular Validator. The network is designed to be a hybrid network that emphasizes a duality of parties to properly distribute power and monetary value evenly across the network.

The backing algorithm is broken into two distinct categories:

Backing by staking

Backing by solving (see publications for more detail) Staking Backing through tokens is done through staking AION tokens towards a particular Validator. The implication of this is that the tokens are escrowed by the network until the end of the term, at which point the tokens are returned to the user (provided no malicious actions have occurred). Or the user can decide to keep their stake with a Validator for the next term. In return for staking, the backer receives a portion of the validator’s reward. The reward is proportional to the amount staked.

Transactions fee

Every transaction sent on Aion-1 carries a fee, payable in AION tokens. These fees are determined by the current network resource availability, as well as the source and destination of the transaction. The transaction’s originator will be responsible for paying for transaction fees. The transaction fees will be pooled and distributed to participants in Aion-1’s consensus process.

Micro-economy of Connector Services

Any node can build a bridge to connect a blockchain to Aion-1. After staking the initial AION tokens to the bridge registry, the bridge creator sets bridge fees and terms, payable in AION tokens.
Once the bridge is built, other nodes can join as validators by staking AION tokens to the same bridge registry. Bridges are designed to be flexible in their configuration and allow for market efficiencies and differentiated offerings.
providing a different level of service catering to different participants or types of transactions

Interchain transactions

An interchain transaction is a trust-free message between blockchains a critical infrastructure component powering interchain communication. Interchain transactions allow any connected blockchain to exchange information.

Interchain transactions are initially created on a source blockchain and then processed and forwarded by bridges and Aion-1 before finally reaching the target blockchain.

The creator of an interchain transaction must pay a transaction fee for the communication cost using AION tokens.These transaction fees will be used to compensate and incentivize validators and bridges.

PARTICIPATING BLOCKCHAINS

AION tokens can be used in the creation and customization of new Aion-compliant blockchains. Fees will be determined by the customized components used. The first Aion-compliant blockchain will be available from Nuco, and an alpha product will be available upon token launch. Nuco’s blockchain is modular, enabling the user to deploy a blockchain network with the optimal components specifically designed to best suit their use case.

Aion-compliant blockchains refer to the participating blockchains that comply with the Aion protocol, and to which bridges can be established easily to forward interchain transactions through Aion-1. To be Aion-compliant, a blockchain must meet certain requirements including :

Be decentralized in some fashion and support procedures commonly found in blockchains such as atomic broadcast and transactions.

The exact implementation is left to the discretion of the bridging protocol and the network itself.

Be able to recognize interchain transactions as distinct from regular transactions.

Be aware of the consensus protocol used by the bridge and store a transaction deemed valid.

Implement locktime or a similar feature that allows tokens to be held by the network for a period of time.

CONCLUSION

At the core of the Aion network, the AION token is used to incentivize participation, fuel applications, securely achieve consensus, and connect an inumerable number of blockchains. Participants have opportunities to engage in various aspects of Aion. From validating transactions, building and deploying software applications, and building and maintaining bridges between blockchains , all of these functionalities utilize the AION token in some form.

Aion is a vision of a connected future, where shared public infrastructure and enterprise infrastructure are seamlessly integrated and indistinguishable to the end user.. This foundational technology will enable the redesign of industries and societies, while reinforcing the roles of value-added contributors and challenging the roles of outdated intermediaries.

Its impossible to achieve this goal without a robust economic model that aligns interests and puts the technology into the hands of contributors around the world.

Definitions

To provide context for the various aspects of representative consensus, refer to the following set of definitions that are used consistently throughout the rest of the paper:

Nomination is the process by which a node can register to become a validator to participate in representative consensus on Aion-1. Nomination must be completed before any other users in the network are able to pledge backing towards them.

Ranking is used to determine the nominated validators with the highest backing. This ranked list becomes the active set, which means that the valiator node can contribute a vote towards the consensus process.

Active set is the tiered list of active validators. The number of validators in the active set.

Roadmap

This paper is intended as a technical introduction, and will be followed by additional research and design considerations. As such, over the coming months, the Aion team will publish a series of research papers that more thoroughly explain the concepts of the proposed consensus algorithm, the virtual machine and scripting language, the bridge and inter-chain transaction functionality, and the economic system underpinning the network. In addition, following this introductory paper, Aion will release its fundraising strategy and timeline for your consideration. We look forward to your feedback as we share our ideas with you.

Team