Aeternity Blockchain and SmartCredit.io (and DeFi)
When we released our whitepaper two years ago, we were not thinking about all problems that we may face in the future. We just knew that we will deliver, the same way as we have always done.
In the beginning, our idea was to build a credit system based on the Bitshares. However, although it is a highly scalable platform — adding smart contract logic to the Bitshares was not trivial.
So, we built and launched our Ethereum based non-custodial lending platform. However, we delivered our system quite differently compared to many other projects — we have several smart contracts, but many of our components are not hosted on-chain, but off-chain. This gives us the possibility to offer our lending platform on other chains as well — that’s what we call multi-platform strategy.
As we run our current Ethereum based DeFi crypto lending platform, we noticed that Ethereum has certain side-effects. Most challenging of them being very high gas costs for the users and the platform…
While looking for alternatives that can help us solve problems such as smart contract vulnerabilities, security, interoperability, speed, and scalability, we encountered the Starfleet Acceleration Program. It’s focused on the æternity blockchain and it is run by the AE Ventures team. We joined with the Starfleet Program and AE Ventures become our investor.
Let’s look on the Aeternity blockchain now:
The security is a big issue for all DeFi projects, especially when you think of hacks in recent years that made people lose their cryptocurrencies. Aeternity blockchain provides flawless smart contract security with Sophia while minimizing the user error possibility with FATE Virtual Machine.
Interoperability is a key element for our project too. Oracles on the Aeternity blockchain provides proper decentralization and trustability.
And most important — æternity provides more functionality for DeFi applications than other blockchain networks such as Ethereum — for 1/100th of the fees, and much, much faster, thanks to æternity’s fusion of Bitcoin-NG Consensus.
SmartCredit.io will make our DeFi solution available on the Aeternity blockchain. The backend components will be the same, the front end components will be the same too. It’s just the smart contracts — they will be different. One set of the smart contracts will be running with the high gas fees (Ethereum) and the other set with the low gas fees (Aeternity).
We plan to make both the Ethereum based and Aeternity based collateral available to our users. We call this multi-chain-collateral approach. User can choose between the chain (one with high gas costs, other with low gas costs) and users can lock the assets on other chains.
In the future the Aeternity users can run the credit solution on the Aeternity chain (low gas costs) and use the collateral from Ethereum and Aeternity. Or the Ethereum users can run our DeFi solution on Ethereum chain (high gas costs) and use the collateral from Ethereum and Aeternity.
It’s about the users — they will decide.
We are happy to be a part of the Aeternity family and hope you can all experience the qualities of AE through SmartCredit.io
