AION is a third-generation multi-tier blockchain network that is created to address the key issues of scalability, privacy and interoperability present in the existing networks. And, according to AION team, it is the first blockchain network to address all these issues. AION blockchain operates as a hub and spoke system model similar to internet providing a trustless mechanism for cross-chain interoperability. At its core, the AION-1, a state-of-art public blockchain that brings a new dimension to security, connects the other blockchain while incentivizes the ecosystem.
The existing system of Blockchain networks, in both public and private system, it cannot communicate or transfer value to each other which specifically brings the interoperability challenges like the PCs of earlier generations. Also, the initial design of blockchain technology are not scalable thus increasing the transaction time on-chain which is the major drawback of the system.
The Blockchain revolution started with Bitcoin, which is the first generation of blockchain technology that allowed traditional transactions to be verified in the peer-to-peer network of nodes on global scale and stores in an immutable public ledger.
The second generation of blockchain technology was introduced by Ethereum, that allowed building application-specific with business logic upon the blockchain that enabled new capabilities beyond verifying and recording transactions.
But, as blockchain going mainstream and without communication with other blockchains, the system cannot attain its full potential. AION blockchain, which terms itself as a third generation blockchain is like a computer network that allows dissimilar network structures to communicate with each other. Thus enabling any institute types to Federate, Scale and Spoke with other chains.
AION's multi-tier blockchain network will send logic and value to participating blockchains to create a connected value chain where every transaction occurs on-chain, in a free manner.
The root of the AION network is the AION-1 Blockchain. AION-1 is built as a fair, distributed and open blockchain architecture that is capable t0 meet the requirements of multi-tier blockchain with following goals.
AION tokens, initially a ERC20 standard token but later changed over to Aion network tokens, set up the base for interactions within the Aion network and act as a fuel to create new blocks, monetize inter-chain bridges and securing the whole network.
Aion project is headed by Matthew Spoke, CEO and Founder of NUCO which is also in the crypto space working on to develop modular, secure and scalable blockchain networks. Both NUCO and Aion are separate where NUCO is a company and Aion is the project which will move to a non-profit organization.