The Tethys network is up and running, and open mining has just begun on the Conflux (CFX) mainnet. Want to support Conflux and get rewarded for enhancing network security? We now offer Conflux mining help. Come mine with me!
You’ll learn about the Conflux ecosystem and how it functions in this extensive mining tutorial, along with a step-by-step approach for beginning your Conflux mining career.
What is Conflux mining?
General overview
Conflux is a next-generation blockchain system that powers a highly scalable cryptocurrency and smart contract system with a cutting-edge consensus protocol.
By processing parallel blocks using a unique DAG structure called a TreeGraph that enables miners to incorporate and process transactions in all concurrent blocks rather than needing to fight for the longest chain, Conflux offers considerable performance benefits.
Similar to Ethereum, the Conflux network runs on an account-based architecture and supports modified versions of Solidity and the EVM for its smart contracts, making it simple to convert over existing Ethereum smart contracts to Conflux.
The project is not being sold to the general public. Its 5 billion CFX genesis supply will be eventually unlocked. Holders of Tethys can convert its FC token 1:1 to
The Role of the CFX token in the Conflux Network
TL;DR: Blockchain network Conflux was developed by Turing Award winner Dr. Andrew Yao. The network employs a cutting-edge consensus technique called the Tree-Graph that maximises security and scalability without compromising decentralisation. Conflux offers a number of financial incentives through the usage of a token called CFX in order to assist the ecosystem’s expansion. The distinctive CFX token economics are created to encourage engagement in the Conflux Network at all levels and to reward actions that contribute to the ecosystem’s optimal operation.
The Basics
Data is organised and saved on any decentralised blockchain network without the need of a reliable third party. The consensus algorithms that are employed to run decentralised blockchains make this possible. All parties maintaining the network can “agree” on what is canonically true using these techniques without knowing or trusting one another.
Each consensus method must to perform at a very high level to keep the network functioning properly. Conflux achieves consensus via a potent and distinctive Proof-of-Work (PoW) technique known as the Tree-Graph. The algorithm can handle between 3000-6000 transactions per second (TPS), which is a substantially faster rate than the ones offered by Ethereum and Bitcoin. Even while high throughput in layer-ones nowadays has become the norm, Conflux can still maintain Satoshi’s idea of PoW without sacrificing decentralisation, as with a PoS or PoA paradigm.
The network also requires well-designed economic models that reward good network activity in addition to trustworthy technology. The ecosystem’s health and development depend on this marriage of well-designed tokenomics and high-functioning technology.
What factors enable a blockchain economy to run smoothly? Conflux has identified three key elements: a sound value system, a just set of governance guidelines, and a vibrant sense of community engagement. Each of these elements has been optimised in Conflux’s tokenomics.
The Core of Conflux’s Economic Model: The CFX Token
We first need to examine the foundation of Conflux’s value system: Conflux’s native token, CFX, in order to comprehend how these components function within Conflux’s economic model.
Drips, which are comparable to Gwei on the Ethereum network or Satoshis on Bitcoin, make up each CFX token. 1018 drips are contained in a single CFX token. A modest amount of drip must be paid as a transaction fee in order to send a transaction across the Conflux Network. These costs are paid to system administrators (miners).
The Conflux Network has some built-in inflation; over time, more CFX is gradually added to the total circulation. More than 800 million CFX are currently in use, which is a combination of the pre-mine distribution and the fresh mining and staking incentives being produced.
Liquid vs. Staked CFX Tokens
On the Conflux Network, each CFX token is available in one of two states: staked or liquid. Tokens can be freely transferred and used if they are liquid. A token cannot be freely transferred while it is still being staked.
CFX tokens are staked if:
They have been purposefully staked in the Conflux Network to earn interest payments for the holder through staking rewards; they have been locked into the Conflux Network for a predetermined amount of time to buy votes in the Conflux Network governance; and they have been put into bonded storage to buy network space. (This is required to keep Conflux’s smart contracts and on-chain data functioning.)
Economic Incentive Mechanisms on the Conflux Network
Every mechanism has been created to promote user involvement in the network. Their shared objective is to make Conflux accessible to as many people as possible while remaining safe, dependable, and stable. The effective utilisation of Conflux’s CPU and on-chain storage capabilities is further facilitated by these incentive mechanisms.
Conflux’s initial economic model was created to reward network builders who built the network directly. These include the original members of Conflux as well as the Conflux Foundation.
The network is already fully functioning, and its incentive mechanisms are created largely to reward ecosystem and system contributors. While ecosystem contributors are the people who consistently create value for the Conflux ecosystem, system maintainers are the miners that assure the safe running of Conflux.
The Conflux Network currently uses the following economic incentive mechanisms:
Staking incentives are produced through the creation of more CFX tokens. Interest payments made by users who do not stake their tokens go to Conflux’s public fund. The value is thereby tacitly transferred from those who do not bet to those who do through these interest payments.
2 Bonded storage encourages Conflux users to get rid of extra data storage. A user is charged Collateral for Storage (CFS) when the data is written in order to deploy a smart contract on Conflux. To put it another way, smart contract deployers are required to lock tokens into the Conflux Network at a rate of 1 CFX for every 1 kilobyte of data. Collateral for Storage is only required for certain types of transactions (CFS).
Bonded tokens produce interest because they are staked. Being of smart contract deployers, the payments are instead made to miners. As a result, the miners who maintain the network are motivated to continue their job while the deployers of the smart contracts are disincentivised to keep extra data on the network. Thus, network congestion is avoided. A smart contract deployer must move data off the Conflux network in order to liberate tokens from bonded storage.
The amount of CFX that a user has agreed to lock and how long they have committed to lock them for determine the number of votes that user has. This is computed by multiplying the number of quarters by the number of tokens, adding 0.25 to the result, and then multiplying the result by the number of quarters. The maximum duration for which tokens
No voting rights if the maturity is less than a quarter.
Locking maturity beyond a quarter: Each CFX has a vote of 0.25.
One CFX has 0.5 votes when the maturity is locked at more than six months.
One CFX has one vote for maturities longer than a year.
The Conflux Economic White Paper is the source.
Conflux Mining Rewards
Conflux provides financial incentives for system maintainers or miners in addition to economic incentives for staking.
The Tree-Graph PoW consensus algorithm used by Conflux gives miners a significant role in the network. Similar to Bitcoin miners, Conflux miners are compensated financially for the processing power they provide to support the network. Block rewards and transaction fees are how these benefits are obtained.
When the Conflux mainnet first went live, the base block reward was initially set at 7 CFX per block, with blocks being mined every.5 seconds or so. Block awards in Conflux are progressively decreased over time. Conflux’s block rewards will be decreased over time units called epochs rather than being split in half. Epochs are stages in the life cycle of the Tree-Graph. Eventually, the Conflux block reward will be lowered to 2 CFX per block at epoch height 3,615,000. A halving event is not currently planned because the block rewards have been decreased. There will be a governance vote to decide how to handle the halving as the 4-year mark approaches.
Block rewards are distributed via a disincentive system that penalises attackers. An attacker will incur costs if they try to create a block containing fraudulent transaction data (also known as a double-spend attack).
Interest payments are another source of income for Conflux miners. The Collateral for Storage (CFS) tokens that smart contract deployers are required to pay are what fund this interest income. As was previously mentioned, this interest is paid at a rate of about 4% per year.
The Conflux Foundation’s Function
The Conflux Foundation, a non-profit corporation, is responsible for developing the Conflux Network’s tokenomics, which includes all of the economic incentive systems mentioned above.
The Conflux Foundation was established in the first stages of development to
The Role of the Conflux Foundation
The Conflux Foundation, a non-profit corporation, is responsible for developing the Conflux Network’s tokenomics, which includes all of the economic incentive systems mentioned above.
The Conflux Foundation was established in the early stages of the network’s growth to offer incentives for overcoming the “cold start” issue, or to encourage participation and network expansion. The Conflux Foundation is now in charge of adjusting resource allocations from the equilibrium of the network. Alternatively, when the governance model decides to alter the network.
The Community Fund and the Ecosystem Fund, which have supported Conflux’s growth since mainnet began in late 2020, are under the Foundation’s management. The Foundation intends to progressively hand over ownership of both of these funds to the decentralised autonomous organisation (DAO) run by Conflux stakeholders as the Network expands. As a result, users will eventually have complete control over the Conflux Network.
The Conflux (CFX) sophisticated DeFi ecosystem aims to foster international multi-chain cooperation in the Asian blockchain market. In many ways, the network is exceptional. Notably, it is currently the only publicly accessible blockchain supported by the Chinese government. As a result, through the Tree-Graph Research Institute in Shanghai, the company significantly contributes to the advancement of research and education in the market.
Notably, China has already criticised the majority of blockchain-related industries. The nation famously outlawed all ICOs in 2017. China recently prohibited its financial institutions from offering cryptocurrency services. Oddly enough, the nation continues to encourage a few blockchain industries like DeFi (decentralized finance). Conflux (CFX) network is leading these efforts.
What Problems Does Conflux Network (CFX) Solve?
Conflux aims to address some of the most pressing problems faced by both cryptocurrency users and Dapp developers. Due to the platform’s distinctive technical setup, it can offer a wide range of services that other chains cannot.
DeFi Compartmentalization
Partitioning is one of the primary issues that Conflux (CFX) addresses. The DeFi industry is growing quickly. On many blockchains, this expansion is, however, occurring in all directions. Investors are now forced to pay greater costs to convert assets between chains as a result of this state of chaos. There is genuine multi-chain compatibility with Conflux (CFX). Using the network’s Shuttleflow service, users can transfer assets between Ethereum, the Binance Smart Chain, the Huobi ECO Chain, or the OKEx Chain.
Compliance
Compliance concerns for Dapp developers are a significant issue that Conflux (CFX) helps with. The crypto-scape is an ecosystem that changes quickly. Developers wishing to create compliant DeFi technologies have access to a network and tools thanks to Conflux. The team sustains close and fruitful ties with pertinent regulatory organisations as part of this strategy.
Lack of Liquidity
Conflux’s multi-chain strategy aids in resolving the liquidity problems brought on by compartmentalization. Multi-chain Dapps that better meet the needs of the investment community can now be made by developers. Conflux assists in creating these innovative and engaging connections between traders and markets.
Benefits of the Conflux Network (CFX)
There are numerous advantages to joining the Conflux Network (CFX). The network’s technical architecture is decentralised, scalable, and secure. A fully EVM-compatible environment was also carefully built by the developers to speed up the onboarding of new developers.
Scalability
Conflux offers users unparalleled scalability. High throughput is offered by the network’s special consensus method without sacrificing decentralisation. Notably, Conflux has a 3000-6000 tps capacity. In contrast, Ethereum can finish tasks at a rate of 13–15 tps.
Low Fees
Lower fees are also made possible by the network’s scalability. Compared to Ethereum, Conflux has far lower costs. Dapp developers can pass along these cheap expenses to the end customers. Conflux hopes to enable stronger and more robust Dapps in the future in this way.
Passive Rewards
Through the Staking Contract capabilities of the network, regular users can obtain passive incentives. Simply place your coins into a network smart contract for a predetermined period of time to stake them. Because your rewards are more predictable when you stake rather than trade, it is safer. When you stake, you also keep ownership of your coins. Within their Dapps, Conflux developers can include staking functionalities.
Programmability
A set of cutting-edge developer tools are available through the Conflux (CFX) network to speed up Dapp development. It is the perfect platform for developing new financial applications, digital assets, commercial apps, and data economies due to its low fees and open nature.
How Does the Conflux Network (CFX) Work
Modern public blockchain Conflux is created to support Web 3.0, e-commerce, and the next wave of financial applications. Turing-complete smart contracts are used by the network to eliminate the need for human interaction.
ShuttleFlow
One of Conflux’s primary characteristics is shuttleflow. As a cross-chain asset protocol, shuttleflow runs. It is what enables Conflux to exchange information and assets with other blockchains. As a result, it is essential to the operation of the network.
Conflux Network (CFX) Consensus
Conflux incorporates Tree-Graph, an improved Proof-of-Work (POW) consensus technique. In many aspects, this system outperforms preceding PoW blockchains. In particular, Tree-Graph uses a Directed Acyclic Graph (DAG) structure to process transactions in parallel.
The Greedy Heaviest Adaptive SubTree (GHAST) approach is used in conjunction with Epochs, which serve as network screenshots, to weight the blocks in the Tree-Graph. Choosing an epoch that is sufficiently deep in the transaction tree is essential to the strategy’s effectiveness. Notably, every block has two ends: a parent edge that connects it to its parent block and a reference edge that points to other blocks and indicates where they are all located in the chain.
Staking Contract
Uniquely, Conflux is one of the few PoW blockchains that provides users with staking features. Users can earn prizes on the network by locking their tokens. Additionally, in order to acquire voting rights via the community governance system, you must stake your CFX tokens.
Conflux Foundation
The Conflux Foundation is in charge of supporting and fostering the expansion of the Conflux ecosystem. This nonprofit organisation donates money in the form of grants to initiatives that have a strong chance of improving the network. The foundation also takes the opinions of the locals into account.
CFX Token
Within the Conflux network, the CFX token serves a variety of functions. The coin serves as a governance token, store of value, DeFi, and cryptocurrency. Additionally, users stake this coin in order to receive prizes. These bonuses are also given out in CFX. This multifaceted strategy aids in increasing demand for the token.
Bonded Storage
To establish bonded storage or their Dapps, programmers need to submit tokens as part of its developer’s suite. These tokens are secured by interest-paying smart contracts. It’s interesting that the interest accrued by these locked tokens is paid as a reward to the miners that support system security.
Community Governance
To exercise your voting rights, you must stake your CFX tokens. Users can suggest changes or new features for the network. These ideas may include anything from modifications to the fee schedule to comprehensive technical changes. Other CFX stakeholder vote on each proposal. Their vote carries more weight the more CFX they possess.
The company wants to introduce a DAO (decentralised autonomous organisation) system in the upcoming years, according to its roadmap. Smart contracts are used in DAOs to replace an enterprise’s typical business practises. Due to its capacity to keep communities together as a project expands, this tactic was invented by Ethereum and has since gained popularity in the DeFi industry.
History of the Conflux Network (CFX)
Following the Conflux Foundation’s official launch in 2018, the Conflux (CFX) network went live. The platform was created by Andrew Yao, a Turing Award winner from Tsinghua University. Unusually, Conflux was welcomed by the Chinese government right away. The city of Shanghai supports the protocol.
In a recent interview, Yao discussed how this extraordinary feat was made possible and said 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 Buy Conflux Network (CFX)
The following exchanges currently offer Conflux Network (CFX) for sale.
Best for much of the world, including Australia, Canada, Singapore, and the UK, is Binance. It is not possible for Americans to purchase Conflux Network (CFX). 10% off all trading costs can be obtained by using the promotional code EE59L0QP.
Over 300 more well-known tokens may presently be traded for cryptocurrencies on KuCoin. It frequently offers purchase opportunities for new tokens initially. Residents of the United States & other countries are currently accepted in this exchange.
WazirX – As a member of the Binance Group, this exchange is held to a high degree of excellence. The finest exchange is available to Indian citizens.
Conflux Network – A Growing Force in the Market
Numerous essential functionalities are made available to the market by the Conflux Network. For starters, the currency is highly special since the Chinese government backs it. The protocol now serves as a portal for more development teams looking to reach China’s sizable cryptocurrency industry. When you consider these advantages, the network’s legal status, and the track record of the development team, it’s simple to understand why more investors have recently expressed interest in Conflux. As the network develops in the future, you can anticipate an increase in these interests.
