æternity is a new blockchain technology, designed to deliver unmatched efficiency, transparent governance and global scalability.
Since the introduction of Ethereum in 2014 there has been great interest in decentralized trustless applications (smart contracts). Consequently, many have tried to implement applications with real world data on top of a blockchain. We believe that storing the application’s state and code on-chain is wrong for several reasons. We present a highly scalable blockchain architecture with a consensus mechanism which is also used to check the oracle. This makes the oracle very efficient, because it avoids layering one consensus mechanism on top of another. State channels are integrated to increase privacy and scalability. Tokens in channels can be transferred using purely functional smart contracts that can access oracle answers. By not storing contract code or state on-chain, we are able to make smart contracts easier to analyze and faster to process, with no substantial loss in de facto functionality. Applications like markets for synthetic assets and prediction markets can be efficiently implemented at global scale. Several parts have proof-of-concept implementations in Erlang. Development tools and application essentials such as a wallet, naming and identity system will also be provided.