Conflux (CFX) is a hybrid blockchain combining proof of work (PoW) and proof of stake (PoS) systems. The network underwent a significant update in 2022, introducing a PoS mechanism through the Hydra upgrade, enabling CFX token holders to stake their tokens for rewards. This upgrade aims to improve security and provide developers with more flexibility for their projects.
The network features two main spaces: Core Space and eSpace. Core Space is the original network environment, while eSpace is an Ethereum Virtual Machine (EVM)-compatible sub-chain that facilitates the deployment of Ethereum projects at lower costs. Both spaces are part of a single distributed ledger utilizing a Tree-Graph structure, which supports asset transfers through the ConfluxHub.
In early 2024, Conflux introduced an EVM-compatible Bitcoin Layer 2 (L2) solution, allowing for asset transfers between Conflux and Bitcoin networks. This L2 solution supports decentralized finance (DeFi) and GameFi applications and includes built-in BTC staking options.
Tree-Graph system allows for parallel block processing and significantly higher throughput compared to linear blockchain structures. The network's consensus mechanism, Greedy Heaviest Adaptive SubTree (GHAST), enhances transaction scalability and security.
Conflux enables developers to leverage Turing-complete smart contracts and interoperability with its Shuttleflow cross-chain solution for Bitcoin and Ethereum assets. It supports various programming languages and provides a detailed SDK for efficient project development on its blockchain.
CFX, Conflux's native coin, is used for transaction fees, storage costs, network maintenance through staking, and mining rewards. The network's governance model grants voting rights to users who stake their CFX tokens, with the rights increasing the longer tokens are staked. The introduction of the Bitcoin L2 solution converts CFX into an ERC-20 token, facilitating its use in the L2 space for transaction fees.
