Blockchain technology creates the backbone of a new, decentralized internet. Bitcoin, the first generation blockchain, functions as a public distributed ledger and allows its users to record peer-to-peer transactions. Then comes the second generation blockchain projects such as Ethereum that allows its users to deploy smart contracts and build other projects on their platform.
While revolutionary, the first and the second-generation projects aren’t exactly interconnected on a global scale. Thus, the creation of a third-generation of blockchain networks that makes discrete blockchain communication a possibility was inevitable.
As a result, AION, the world’s first third-generation blockchain network was born. But, what is AION? How does AION blockchain work? What makes it different or better than other blockchain projects? We will discuss it in detail but first, what is it?
What is AION?
AION is a multi-tier blockchain system designed as the solution to the privacy, interoperability, and scalability issues present in existing blockchain networks. Developed by a Canadian enterprise blockchain firm, Nuco, AION permits seamless communication among various blockchains and helps maintain its applications.
It operates on a trustless mechanism that facilitates cross-chain interoperability and assists custom blockchain structures. Moreover, the AION blockchain provides an ecosystem without any interference from intermediaries and in its network, value, liquid assets, and logic are passed among the users. The network offers best-in-class security and some of the best economic motivational incentives in the crypto sphere.
Connecting your AION Address to ZenLedger For Your Crypto Tax Forms
- To import your AION transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button.
How Does AION Blockchain Work?
The multi-tier, trustless AION network comprises the following attributes:
The AION ecosystem incorporates Connecting Networks protocol that facilitates communication between private and public blockchains within its network. The Connecting Networks protocol enables a seamless transaction flow among networks. It also has a bridging protocol that allows message transfer among participating blockchains.
If you are thinking what is AION’s USP, it is most probably that all connected networks can communicate with each other. Cross-chain transactions are created on the source blockchain and reach the target blockchain through bridges and connecting networks.
Each cross-chain transaction has three main components:
- Payload – Actual data
- Metadata – Routine, and fee-related information
- Merkle Proof (Optional) – Utilized only if the sender wishes the bridge bypassed
At each phase, a validator verifies the transaction and if the transaction is deemed invalid by the validator, the ecosystem returns to its previous state.
Bridges is the term used for validators. These validators verify the transactions across the AION network. They validate the transactions only when it is sealed by the source blockchain and the forwarding fee is paid. Various validator groups can register various bridges and the user can decide which bridge to use to reach the target network.
A participating network is any network qualified to join the AION blockchain ecosystem. Other than a blockchain entity – database clusters, oracles, and crypts can join the network. However, a participating network must fulfill these conditions. They must be:
- Capable of differencing between cross-chain and regular transactions
- Acquainted with the consensus protocol
- Able to have lock time if a cross-chain transaction is on hold
How to Buy AION?
Buying AION is simple. Here are the steps to go about it:
Open an Online Account
If you are buying crypto for the first time, you’ll need an online account with a crypto exchange or a trading platform. Go through the KYC procedure with a government-issued ID and activate your account. Remember, these exchanges or platforms may charge a small fee or commission whenever you buy or sell.
Buy a Wallet (optional)
Storing your coins on the exchange or the platform can jeopardize your investment in case they are hacked. Therefore, if you plan to hold your coins for a long time, you must get a crypto wallet. There are mainly two types of wallets:
Hardware wallets don’t need an internet connection to store your tokens. They may be the most expensive option but provide you with the most security. If you hold a lot of cryptocurrencies, you should get a hardware wallet.
Software wallets are mobile or desktop applications that store your coins and secure them with a private set of keys. These wallets are easy on the pocket but don’t provide the same level of security as hardware wallets.
With the online account and a wallet setup, add funds to the exchange or trading platform, search for AION, and place your order. Now, you own AION.
The Bottom Line
Interoperability is the main reason behind blockchain technology adoption. Not only this, if blockchain networks want to go mainstream, they must be capable of communicating with legacy systems such as financial institutions. AION blockchain fortifies interoperability and security in the crypto landscape. It offers scalability, security, and interoperability solutions to both public and private blockchains. What is AION’s future in the cryptosphere? With continuous growth, rapidly growing concepts of side-chains, and communication between blockchains, AION can be a leading project in the future.