A hybrid blockchain combines benefits of public and private blockchains: an application or service can be hosted on an independent permissioned blockchain while leveraging a public blockchain for security and settlement. It lets application developers get the best of immutability and trust from a permissionless public network while still retaining the benefits of control and performance provided by a permissioned blockchain.

Aergo Chain

The Aergo Chain is a new clean-room implementation of a high-performance and highly scalable blockchain protocol. It includes a number of advanced designs to mitigate key issues currently experienced with existing public and private blockchain protocols.

It includes a lightning-fast smart contract engine with advanced features and frameworks such a distributed version and concurrency control. The Aergo Chain will support parallel throughput networking fabric as well as multi-thread architecture for multi-core and ultra-fast cached memory computer environments.

The Aergo platform ecosystem consists of interconnected, use-case specific blockchains based on the same standardized protocol, divided into two layers: the main network, the permissionless public base-layer blockchain, and layer two, independent permissioned blockchains dedicated towards specific applications and services.

Main Network

The Aergo main network is a permissionless public platform for running fast and scalable blockchain applications in the cloud. It is secured by a Byzantine Fault-Tolerant Delegated Proof of Stake (BFT-DPOS) consensus model.

The public network acts as a central hub for independent blockchains and application development managed and secured by 23 trusted block producers. It provides the functionality for integrating different applications and services on their own sidechains, enabling developers to implement sophisticated business models making use of the complex network topologies in the real world.

Sidechains

In order for application and service developers to leverage the immutability and inherent security provided by the permissionless public network while still being able to practically run an application, they are able to deploy custom permissioned private or public sidechains based on the Aergo Chain protocol. This allows them to still access the enhanced performance, scalability, distributed governance, and confidentiality needed to host real-world applications and compliant enterprise-IT solutions while retaining elements of trust and immutability.

Permissioned blockchains on the Aergo platform use an algorithm optimized for forming consensus under private environments. Leader-based Proof of Authority (LPOA) provides the security and scalability required for running enterprise-grade blockchain applications and services.

LPOA implements a lease-based leadership schedule to delegates for transaction finality and for the elimination of block reorganization possibility. Validator candidates are pre-selected, leaders are elected through consensus among validators, blocks are fully verified by validators in the network, and leadership fallover to alternative candidates is seamless in the possibility of failure.

All permissioned blockchains on the Aergo network can anchor, bridge, and integrate with any other blockchain in the ecosystem seamlessly using the Merkle Bridge through the Interchain Interface. Development and scripting is simple and allows for the use of familiar programming languages like SQL.

Operators of permissioned networks can handle data through a hyper-fast database engine, LiteTree, developed by Aergo engineers. LiteTree is a branchable implementation of SQLite that uses LLVM to achieve high-performance.

To further enhance integration capability, private blockchain deployments form a singular Merkle-tree merged with the Aergo main network. This allows for even more seamless collaboration and interoperability between independent networks.

Merkle Bridge

Aergo uses the Merkle Bridge for interchain communication. The Merkle Bridge is an interoperability protocol optimized for bridging assets and information between blockchains on the Aergo platform. Additionally, it allows for the creation of bridges between Aergo and Ethereum. It uses Merkle proofs to prove and validate the existence of something on another blockchain.

The Merkle Bridge behaves like a multisig contract that signs a sidechain state root instead of individual transactions, as done in other blockchain implementations. Users can make a withdrawal by proving their state. The main benefit is that the token custody is much more decentralized and simple to operate than usual multisig contracts. Other benefits include greater cost-effectiveness, censorship-resistance, security, and simplicity.

Named Account

Aergo contains a name service to translate addresses into easy to remember short names. One name maps to exactly one address. Names are currently fixed to a length of 12 characters. Names include an owner and a destination. The owner is used to determine who can change the name, the destination is the actual address the name should resolve to. In case of normal accounts, these two values will be identical, but they differ in case of smart contracts.

DAO

Token holders on the Aergo main network will have the option to stake their tokens and vote on proposals put forth by the block producers. These proposals may look to steer the direction of development of the Aergo Organization's Tech Committee and tune network parameters (i.e., fees, gas price, block producer election). They may even vote for the development of additional token utility. This is part of Aergo’s mission to create a truly democratic and self-sustaining ecosystem.

The DAO system will be in-production after the Aergo network passes its Incubation and Acceleration phases, into its Liberation phase.