Conflux is a utility token that was released by Conflux Network to fuel its ecosystem. The company standing behind the project is a blockchain startup supported by the Shanghai government. Conflux is often referred to as one of the most advanced blockchains in the world. This is an open-source permissionless Layer 1 protocol that was designed to develop dApps and increase the usage of Web 3.0 solutions.
The Conflux Foundation was established in 2018 with the goal to develop an innovative unique blockchain solving several complicated problems associated with the industrialization of public chains. The network should connect decentralized economies across borders and protocols. At the time of writing, Conflux is considered the only approved public blockchain venue without official permission. Besides, this is the only platform of this type supported by the Chinese government and the verified issuer of the regulatory-compliant Chinese fiat stable coin CNHC.
Conflux Network creates a self-adapting economic model that is able to remove dissonance between community coordination, circulation of tokens, and contract incentive. The team works to encourage different roles within the ecosystem for proper distribution of the limited computing and on-chain storage resources.
There are three types of participants operating on the platform. The first group includes the Direct Builders of the facility, i.e. the team and Conflux Foundation that develops the underlying technology of the public chain. The second group consists of Miners who verify operations and maintain the security of the platform. Finally, a group of Ecosystem Contributors includes common members of the community who contribute to its growth and development by increasing the adoption of the technology and voting.
The Conflux Network is a DAO (Decentralized Autonomous Organization). The blockchain delivers an increased level of security and protection against replay attacks at the protocol level. Since the Conflux network is a public open network, it is designed for the development of new digital assets, business applications, and the personal data economy. Also, the network solves the problem of scaling providing high bandwidth and low commissions.
Dr. Andrew Yao (Tsinghua University) from Turing Lab conducted comprehensive research before the token was launched. The Tree-Graph mechanism was integrated into the system to optimize security, scalability, and decentralization. In addition, the network features a parallel structure of chains that distinguishes the system from other blockchains such as Ethereum or Bitcoin, where the generation of blocks goes one after another.
The model of Conflux Network represents a hybrid consensus that incorporates PoW (Tree-Graph) and PoS to attain a higher level of network security without compromising decentralization and throughput. The unique consensus model has become an innovative step helping to realize deterministic finality over a Proof-of-Work foundation. PoS overlay chain functions simultaneously with the PoW chain, thus making the PoW chain more secure, as it removes the possibility of 51% attacks and delivers finality to transactions. In this way, Conflux Network has become a “robust network with strong interoperability, zero congestion, and low fees” as developers stated on the official website of the platform.
Research instruments, as well as infrastructure elements, make the Conflux Network accessible and composable. Areas of study include such elements as frameworks, IDEs, and security appliances. The blockchain is designed to bridge other systems as well. DApps are used within the ecosystem to incentivize users, improve liquidity, and contribute to composability of the network.
As for mining, the process is implemented with the assistance of the Octopus algorithm on various powerful video cards. There is a CFX mining wallet available for users on different exchanges. Also, customers can use a mobile solution known as MoonSwap App, a multi-currency wallet Dappbirds, and also such wallets as Conflux Portal, Hashkey, Cobo or Bitpie.
As the Conflux Network has received support from the Chinese government, its growth has significantly contributed to the development of digital technologies. The support has become possible sine state structures are also interested in revolutionary technological breakthroughs in this area. Apart from state help, the company has numerous contributors among well-known global brands, reputable scientific centers, and highly experienced specialists from Xinhua University. It is also worth mentioning that the Conflux Network is supported by one of the global teams of top-class engineers and innovative Turing Award-winning computer scientists.
The CFX token
CFX is an effective tool used for interacting within the network that embraces next-generation products and dApps on a platform. With all the tools available in the ecosystem, developers can create new applications in an EVM-compatible environment.
The amount of pre-mined tokens in the genesis block of Conflux Network equals 5 billion CFX. The genesis tokens are distributed among direct builders and contributors. Private round investors get 16% of premined tokens, while 36% goes to the team, advisors, and Conflux Foundation. The ecosystem fund receives 40% of tokens that are given to developers who work on dApps within the Conflux ecosystem. 8% of premined tokens are sent to the Community Fund to motivate them to develop the ecosystem. Also, it’s worth adding that these tokens are locked and subject to gradual unlocking.
CFX team and partners
Ming Wu, the co-founder and CTO of Conflux, worked previously as a senior researcher at Systems Research Group in Microsoft Research Asia. His team has developed large-scale distributed machine learning platforms, which were later used in Microsoft products.
The network partners with numerous reputable brands in the sphere of cryptocurrencies such as Sequoia, MetaStable, f2pool, and Huobi Capital. Besides, the governmental bodies and institutes support the system strategically. It was reported about the collaboration of the company with scientific institutions such as Shanghai Tree-Graph Blockchain Research Institute, Tsinghua University, University of Toronto, and others. The joint efforts of the team and its supporters make the blockchain one of the most powerful and reliable systems in the industry.
In 2021, the company formed a strategic partnership with the OKex DeFi blockchain that is called OKExChain. The main goal of this cooperation is to help DeFi projects to come to the Chinese market.