Conflux (CFX) is an advanced DeFi ecosystem that seeks to promote cross-border, multi-chain collaboration in the Asian blockchain sector. The network is unique in many ways. Notably, it’s the only state-endorsed public blockchain operating in China at this time. As such, the firm plays a vital role in advancing education and research in the market via the Tree-Graph Research Institute in Shanghai
Notably, China has been critical of most blockchain sectors in the past. Famously, the country banned all ICOs in 2017. Just last week, China went on to forbid the country’s financial institutions from providing crypto services. Oddly enough, there are still a few blockchain sectors the country supports such as DeFi (decentralized finance). Pioneering these efforts is the Conflux (CFX) network.
What Problems Does Conflux Network (CFX) Attempt to Fix?
Conflux sets out to solve some of the biggest issues encountered by both crypto users and Dapp developers. The platform’s unique technical infrastructure enables it to provide a variety of services that other chains can’t offer.
One of the main problems Conflux (CFX) tackles is compartmentalization. The DeFi sector is expanding rapidly. However, this expansion is going in all directions across multiple blockchains. This state of disarray has left investors paying higher fees to convert assets across chains. Conflux (CFX) provides true multi-chain interoperability. Users can convert assets across Ethereum, the Binance Smart Chain, Huobi ECO Chain or OKEx Chain utilizing the network’s Shuttleflow service.
Another major issue that Conflux (CFX) helps alleviate is compliance woes for Dapp developers. The crypto-scape is a fast-moving environment. Conflux introduces a network and tools for developers looking to build compliant DeFi technologies. As part of this strategy, the team maintains close and constructive relationships with relevant regulatory bodies.
Lack of Liquidity
The multi-chain approach put forth by Conflux also helps to solve the liquidity issues associated with compartmentalization. Developers can now create multi-chain Dapps that better serve the needs of the investment community. In this way, Conflux helps to link traders and markets in new and exciting ways.
Benefits of the Conflux Network (CFX)
There are a lot of benefits you obtain when you join the Conflux Network (CFX). The technical structure of the network is secure, scalable, and decentralized. Additionally, the developers were careful to create a fully EVM-compatible environment to streamline the onboarding of new developers.
Conflux provides users with unmatched scalability. The network’s unique consensus mechanism provides high-throughput without sacrificing decentralization. Notably, Conflux is capable of 3000-6000 tps. In comparison, Ethereum can complete around 13-15 tps.
This scalability also makes it possible for the network to provide lower fees. Conflux offers far cheaper fees than Ethereum. These low costs can be passed on to the end-users by Dapp developers. In this way, Conflux seeks to empower more powerful and robust Dapps in the future.
Regular users can secure passive rewards via the network’s Staking Contract features. To stake your coins, you just lock them into a network smart contract for a preset time. Staking is safer than trading because your rewards are more consistent. Additionally, you retain ownership of your coins when you stake. Conflux developers can also offer staking features within their Dapps.
The Conflux (CFX) network provides a suite of advanced developer tools to streamline Dapp development. The combination of low fees and the open nature of the network, make it ideal for building new financial applications, digital assets, business applications, and data economies.
How Does the Conflux Network (CFX) Work
Conflux is a state-of-the-art public blockchain designed to power the next generation of financial applications, e-commerce, and Web 3.0. The network leverages Turing-complete smart contracts to remove the need for human intervention.
Shuttleflow is one of the main features of Conflux. Shuttleflow operates as a cross-chain asset protocol. It’s what allows Conflux to communicate data and assets across other blockchains. As such, it’s a critical component of the network’s functionality.
Conflux Network (CFX) Consensus
Conflux integrates an upgraded Proof-of-Work (POW) consensus mechanism known as Tree-Graph. This protocol improves on earlier PoW blockchains in many ways. Specifically, Tree-Graph can process transactions in parallel thanks to its employment of a Directed Acyclic Graph (DAG) structure.
Tree-Graph combines the use of Epochs that act as network screenshots, with the Greedy Heaviest Adaptive SubTree (GHAST) system to assign weights to the blocks in the Tree-Graph. The key to success in this strategy is selecting an epoch sufficiently deep in the transaction tree. Notably, all blocks possess two ends, the parent edge which is attached to its parent block, and the reference edge which is referring it to several other blocks and how they are all situated in the chain.
Uniquely, Conflux is one of only a few PoW blockchains to offer staking features to users. Users can lock their tokens and earn rewards on the network. You also need to stake your CFX tokens to gain access to voting rights via the community governance protocol.
The Conflux Foundation is responsible for encouraging and promoting the further development of the Conflux ecosystem. This non-profit group provides funds in the form of grants to projects that have clear potential to better the network. Additionally, the foundation takes into consideration the community’s input.
The CFX token plays multiple roles within the Conflux network. The coin functions as a cryptocurrency, Store-of-Value, DeFi, and governance token. It’s also the coin that users stake to earn rewards. These rewards are paid out in CFX as well. This multi-faceted approach helps drive demand for the token.
As part of its developer’s suite, programmers must submit tokens to create bonded storage or their Dapps. These tokens are locked into smart contracts that pay interest. Interestingly, the interests accumulated by these locked tokens are paid as incentives to the miners helping to further secure the system.
You must stake your CFX tokens to gain voting rights. Users can submit proposals to alter or add features to the network. These proposals can cover anything from fee structure changes, all the way to complete technical alterations. Each proposal gets voted on by other CFX stakers. The more CFX they hold, the more weight their vote holds.
According to the company’s roadmap, the firm intends to launch a DAO (decentralized autonomous organization) system in the coming years. DAOs replace the normal business acts of an enterprise with smart contracts. This strategy was pioneered by Ethereum and has become a popular feature for the DeFi sector due to its ability to keep communities together as a project expands.
History of the Conflux Network (CFX)
The Conflux (CFX) network entered the market in 2018 following the official start of the Conflux Foundation. The platform is the brainchild of the Turing Award recipient Andrew Yao at Tsinghua University. Uniquely, Conflux was immediately embraced by the Chinese government. The protocol is backed by the city of Shanghai.
Discussing how this monumental achievement was possible in a recent interview, Yao explained that “Conflux is the only regulatory-compliant public, permissionless chain in China because we specifically did not have a public token sale, which has allowed us to remain compliant and in good standing within China.”
How to Get the Conflux Network (CFX)
There are a lot of different ways to get our hands on some CFX tokens. One of the best ways to accomplish this task is on Binance. Binance is the top-performing exchange for CFX according to market capitalization. Notably, there are no direct CFX/Fiat trading pairs available. You will first need to purchase or send BTC to your network wallet to trade.
How to Store Conflux Network (CFX)
There are a variety of free wallet options available for CFX holders. MathWallet is one of the most popular options for this coin. The platform operates as a multi-coin protocol that offers cross-chain token exchanges, a multi-chain Dapp store, and node operations for PoS chains. Users can send, receive, trade, or store their tokens using the wallet’s easy-to-navigate interface.
Conflux Network – A Growing Force in the Market
The Conflux Network provides a variety of vital features to the market. For one, the fact that the coin has support from the Chinese government makes it very unique. The protocol now functions as a gateway for other development teams seeking access to China’s massive crypto market. When you combine these features, the network’s regulatory standing and the development team’s proven history, it’s easy to see why more investors have shown interest in Conflux as of late. You can expect these interests to continue to rise as the network expands in the future.