Conflux Network (CFX): China-Recognized Public Blockchain

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• WHAT IS CONFLUX NETWORK?
• WHAT IS CFX?
• Conflux Network (CFX) OUTLOOK
• FAQ
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Conflux (CFX) is a hybrid PoW/PoS blockchain that supports smart contracts and DApps with high throughput and low latency. Key features include Tree-Graph consensus and cross-chain interoperability.

WHAT IS CONFLUX NETWORK?

Conflux (CFX) is a hybrid permissionless blockchain that combines Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. Initially launched as a PoW blockchain, it is a high-performance, scalable, secure, and interoperable public blockchain platform that supports smart contracts and decentralized applications (DApps). Conflux uses a unique Tree-Graph consensus algorithm to achieve high throughput, low latency, and zero forks, setting it apart from other blockchains. 

In 2022, Conflux underwent a major upgrade known as the Hydra upgrade, which introduced the PoS component. This allows CFX token holders to earn rewards by staking their tokens in the PoS system.

The Hydra upgrade also introduced the concept of Spaces to the network, primarily consisting of two spaces: Core Space and eSpace. Core Space represents the original Conflux network, while eSpace, fully compatible with EVM, operates as a subchain on Core Space. Through eSpace, you can easily deploy Ethereum projects at low cost, while Core Space is ideal for launching new projects and regulated public blockchain DApps.

• Unique Features of Conflux

1. Tree-Graph Consensus Algorithm:

One of Conflux’s most notable innovations is its Tree-Graph consensus algorithm. Unlike traditional blockchains such as Ethereum and Bitcoin, which can only confirm one block at a time, Conflux’s structure allows for the simultaneous confirmation of multiple blocks. This parallel processing capability enhances network efficiency and speed, enabling it to handle more transactions at once.

2. Hybrid PoW and PoS Model:

By combining PoW and PoS, Conflux ensures a robust consensus mechanism that leverages the strengths of both. The PoW component guarantees security and decentralization, while the PoS aspect enhances scalability and reduces the environmental impact associated with mining.

3. Cross-Chain Interoperability:

Conflux also supports cross-chain interoperability, facilitating seamless transfer of assets and data between Conflux and other major blockchains such as Ethereum, Polkadot, and Binance Smart Chain (BSC). This interoperability is crucial for enhancing liquidity and fostering a more connected blockchain ecosystem.

4. Strategic Partnerships and Future Potential:

Conflux has established several strategic partnerships, including a pilot project with China’s second-largest telecommunications company to support blockchain-enabled SIM cards. These partnerships highlight Conflux’s commitment to integrating blockchain technology into real-world applications and expanding its user base.

>>> More to read : What Is Ethereum & How Does It Work?

WHAT IS CFX?

CFX is the native token of the Conflux Network, used by Conflux users to pay for miner fees and storage costs. CFX also supports network maintenance through staking and mining rewards. According to Conflux’s annual inflation report in August 2023, miners receive 1 CFX per block, while PoS stakers earn rewards at an annualized interest rate of 0.04% and an annualized yield of 12.9%.

In addition to earning rewards, users who stake CFX tokens for more than a quarter of a year will also have voting rights in network governance. The longer the staking period, the more voting power is gained (up to 1 vote for staking over a year). You can extend the lock-up period of the staked tokens, but you cannot reduce the stake or withdraw tokens during the staking period.

With the integration of Bitcoin Layer 2 solutions, CFX can effectively convert to ERC-20 tokens. This facilitates interaction with DApps in the BTC L2 space, as BTC is used as a miner token for transaction fees in this new domain.

• Conflux Wallets

CFX can be stored in three cryptocurrency wallets: Fluent, MetaMask, and Ledger.

1. Fluent: Fluent is the native Web3 wallet for the Conflux network, designed for storing CFX and ERC-20 tokens and interacting with DApps within the Conflux ecosystem. The Fluent wallet supports both Conflux Core and eSpace.

2. MetaMask: A popular wallet among cryptocurrency enthusiasts, MetaMask supports only eSpace assets.

3. Ledger: A secure hardware wallet that can store your CFX assets in both Core and eSpace. You can connect Fluent and MetaMask to Ledger Nano S or Nano X to store CFX assets securely.

• CFX Tokenomics

CFX is an inflationary token with a current inflation rate of 1.9%. The direct builders and ecosystem contributors of Conflux Network were allocated 5 billion pre-mined CFX tokens. The distribution of the genesis tokens is as follows:

➢ 12% — Private investors (released over two years)

➢ 4% — Foundation holdings (plus remaining tokens not sold to private investors, unlocked monthly over two years)

➢ 36% — Genesis team (released over four years)

➢ 8% — Community fund (rewards to incentivize community participation, unlocked over four years)

➢ 40% — Ecosystem fund (allocated to community developers supporting DApps within the Conflux ecosystem, unlocked over four years)

Conflux Network (CFX) OUTLOOK

Overall, Conflux stands out in the blockchain landscape due to its innovative technology and strategic vision. With its ability to efficiently handle high transaction volumes and its partnerships in key markets, Conflux is well-positioned for strong performance in the coming cycles. Whether or not the narrative of Chinese tokens persists, CFX is poised for long-term viability and growth.

>>> More to read : What is Bitcoin: A Comprehensive Overview

FAQ

• What is Conflux Network (CFX) ?

Conflux (CFX) is the native token of the Conflux network. Conflux is a high-performance, scalable, secure, and compatible public blockchain platform that supports smart contracts and decentralized applications (DApps).

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