What is Conflux (CFX)?

Deep Dive

1. Technology & Architecture

Conflux uses a Tree-Graph consensus algorithm (CoinMarketCap) that processes blocks in parallel, avoiding bottlenecks seen in linear chains like Bitcoin. This hybrid PoW/PoS system ensures security while enabling speeds up to 15,000 transactions per second (TPS) after its 3.0 upgrade (Conflux Network). Its Ethereum Virtual Machine (EVM) compatibility allows developers to port Ethereum dApps seamlessly.

A dual-space design separates Core Space (native transactions) and eSpace (EVM contracts), balancing performance with flexibility. The ShuttleFlow bridge facilitates cross-chain asset transfers across 20+ networks.

2. Purpose & Regulatory Positioning

Conflux uniquely operates as China’s only sanctioned public blockchain, aligning with national policies. It’s piloting an offshore yuan stablecoin (AxCNH) for Belt & Road cross-border settlements (Yahoo Finance), positioning it as a bridge between traditional finance and crypto in regulated markets.

The network also supports real-world asset (RWA) tokenization, including green energy credits and AI-driven payment systems, targeting institutional adoption.

3. Tokenomics & Ecosystem

The CFX token powers transaction fees, staking (4% annual yield), and governance. A fee sponsorship mechanism lets enterprises subsidize user transactions, easing onboarding. Recent partnerships with China Telecom (blockchain SIM cards) and Self Chain (keyless wallets) highlight its enterprise focus.

Conclusion

Conflux is a high-speed, regulation-friendly blockchain built to merge decentralized tech with institutional needs, particularly in Asia. Its technical upgrades and geopolitical positioning raise a critical question: Can it sustain growth as a compliance-first chain while maintaining decentralization principles?