What's Conflux Network And Why It's Undervalued

By Cryptopeach | Public Thoughts | 8 May 2021


Hello,

Conflux Network is a blockchain that has it's token called Conflux (CFX), it has also a DEX called MoonSwap with many DeFi and high yield options. Many people are not really aware of what it is and how it works so I'm going to explain it.

When Conflux is talked people associate it as a layer 2 solution for ETH, like Matic (Polygon), the first thing you need to know is that it's not the case, it's not a Layer 2 solution and it's value won't suffer when ETH 2.0 comes out like this layer 2 solutions.

Conflux is a feeless DeFi Network, you can interact with smart-contracts without paying any fee. This is what layer 2 solutions promise aswell, but the difference comes next.

Layer 2 solution have a problem with one of the pilars of blockchain, decentralization. Conflux solves this problem with PoW (Proof of Work). What this means?

Conflux can be mined with the Octopus Algorithm, so anyone with a 4 GB Vram Video Card can mine it. This means that there are various mining pools mining it and validating blocks making the hashrate decentralized and the Network secure with this decentralization.

There aren't people with full posession of a big bag like in Matic and other layer 2 solutions, only mining gives you coins, so you have to contribute with power to the Network so you can have CFX. The more power you give the more Conflux you mine, it's just like Bitcoin but easier to mine. This process combined with the free smart-contracts makes Conflux very competitive and an alternative to ETH even after the upgrade to ETH 2.0.

Differences between ETH 2.0 and CFX:

The transition to ETH 2.0 will end the mining process of ETH, this means like I said above centralization of the network might be a problem, the zero fees will be a great upgrade but will cost decentralization. Conflux has the best of both worlds, you have decentralization with the Proof of Work method and you have the zero fees smart contracts all in one.

Maybe there's a big competitor for ETH here and it still didn't exploded. Countries like Canada, China and others have already take interest in the project, many developers come from universities in this countries.

The DEX MoonSwap has a very beautiful design and it's very easy to interact with, you can find APY of more than 100%, some are 400%, you still very early in this project, I bought in with some money, waiting to see where this goes being such a great project.

Best Regards,

Cryptopeach

 

 

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Cryptopeach
Cryptopeach

Crypto enthusiast.


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