What is Aergo (AERGO)

  • Aergo Chain is an open-source hybrid blockchain protocol that combines aspects of public (trust/decentralized) and private (performance/control) blockchains to cater towards enterprise and government level use-cases.
  • The Aergo Platform provides a set of infrastructure components for enterprises and developers to host blockchain applications based on the Aergo Chain. Aergo offers a smart-contract engine supporting Lua and SQL, as well as various features, such as distributed version and concurrency control.
  • Private blockchains on the Aergo platform run on a Leader-based Proof-of-Authority (PoA) consensus mechanism powered RAFT algorithm, while the public blockchain network, the Aergo mainnet, runs on a Byzantine Fault-Tolerant Delegated Proof-of-Stake (BFT DPoS) mechanism.
  • To vote and manage block producers, AERGO tokens need to be acquired and staked. Users may decide to pay cloud providers to host their private blockchains on dedicated nodes, instead of hosting them themselves. Enterprise clients may access additional third-party services via AERGO.

1. What is Aergo (AERGO)?

Aergo Chain is an open-source hybrid blockchain protocol powered by the native cryptocurrency AERGO.

Aimed at enterprise and government level use cases, it combines aspects of public (trust/decentralised) and private (performance/control) technologies. The Aergo platform provides a set of infrastructure components for enterprises and developers to host blockchain applications based on the Aergo Chain. Aergo offers a smart contract engine supporting Lua and SQL, and also a number of features such as distributed version and concurrency control.

Private blockchains on the Aergo platform run on a Leader-based Proof-of-Authority consensus mechanism powered-RAFT algorithm, while the public blockchain network, the Aergo mainnet, runs on a Byzantine Fault-Tolerant Delegated Proof-of-Stake mechanism.

To vote and manage block producers, AERGO tokens need to be acquired and staked. Users are able to utilize the platform to pay enterprise-grade cloud providers such as large telecommunications firms to host their private blockchains on dedicated nodes, rather than going through the cumbersome process of hosting these blockchains themselves – a functionality that is also unlocked via AERGO tokens.

Enterprise clients will need to use the AERGO utility token to acquire extra application services from other third parties. Additionally, all of Blocko’s (Samsung-backed) future services will be based on the new Aergo Enterprise products that requires AERGO tokens to work.

An example use case in production using Aergo includes a solution adopted by Lotte Card for over 25 million users for fingerprint credit card verifications. It allows Lotte Card to get automated attestations to whether a fingerprint submitted at checkout matches the identity of the credit card owner. The solution is built using a version of Aergo’s Lua smart contracts with SQL integration. SQL integration has been verified to save Lotte Card 90% of their security expenditures for fingerprint authentication due to the blockchain system’s ability to eliminate the need for manual verification of fingerprints.

Other clients using Aergo-based solutions include Hyundai Motor Group, Korea Stock Exchange, Shinhan Bank, POSCO, and more.

2. Economics and supply

The team raised capital in a two-phase supply distribution is as follows:

  • Private Sale: it was conducted in multiple rounds from July 2018 to November 2018 raising a total of 71,721 ETH ($25.38MM) at an average rate of $0.187 per AERGO..
  • Call Option: a call option of 20MM AERGO tokens with early business supporters was issued on November 2018 at an exercise price of $0.187 and $0.167, exercisable end March 2021 that will generate a further $3.36MM (if exercised).
AERGO token distribution (%)
AERGO token release schedule

25% of total AERGO supply is allocated to staking. The staking tokens are loaned to major network nodes (Telco partners across Asia and Europe) in an evenly distributed amount for them to secure the Mainnet as part of a 10 year contractual agreement. The loan is being used to incentivize these partners to integrate their secure cloud capabilities with the Aergo platform architecture to allow for instant provisioning of business services running on Aergo.

Aergo plans to release the plan to become a Decentralized Autonomous Organization (DAO) by the end of 2020, and all token releases will be determined by community voting afterwards. This token release schedule shows token releases before the end of 2020.

3. Aergo’s activity and community overview

3.1 Social and community data

Aergo has prioritized South Korea, United Arab Emirates, United Kingdom, China and Germany as the initial key geographical regions for its community development.

Aergo’s current community development strategies include:

  • Global block producer program to educate and incentivize block producers.
  • International community bounty/ambassador programs for Aergo promotion.
  • Participate/host blockchain related conferences and meetups.
  • Release weekly technical & community updates; Monthly newsletters.
  • Comprehensive quarterly project updates with full financial information and corporate strategy disclosures.

Aergo’s future community development strategies include:

  • Launch diverse range of products built on Aergo platform and build partnerships with enterprise partners and customers.
  • Conduct programs that support decentralized application development and publishing.
  • Host global hackathons and AMAs to engage with developers and crypto communities.
  • Expand media coverage and partnerships with universities, research institutions and blockchain projects.

3.2 Community and social media channels

Its community and social channels include:

Telegram (English)
KakaoTalk (Korean)
Twitter (English)
Medium (English)
Reddit (English)
WeChat (Chinese)
Weibo (Chinese)

4. Appendix

By Binance Research