Aion cryptocurrency guide advises where to buy and how to buy Aion. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Aion as well its status in the world of cryptocurrencies.
Aion, Monday, 2021-03-01
- 1 What Is Aion?
- 2 Beginner's Guide to Aion
- 3 Where and How to Buy Aion?
- 4 Aion Markets
- 5 Where to Spend or Use Aion?
- 6 How Does Aion Work?
- 7 Aion Regulation
- 8 Is Aion Secure?
- 9 History of Aion
- 10 Aion Videos and Tutorials
- 11 See Also
What Is Aion?
Aion is a revolutionary and multi-tier blockchain platform designed to address the problem of limited interoperability between blockchains. Since 2009 when Bitcoin was released by Satoshi Nakamoto, most blockchains have suffered the serious problems of poor interoperability, privacy, and scalability. Now, Aion has come to operate as a third-generation blockchain network by allowing the blockchains to easily link with each other.
To demonstrate the problems that Aion comes to address, it is important to check at the evolution of the blockchain technology.
- The first generation blockchains such as Bitcoin and Litecoin had their functions mainly focused on sending value on a peer2peer basis within the same network.
- The second generation cryptocurrencies such as Ethereum introduced smart contracts that allow business logic to be ingrained in the digital asset exchange system. These platforms targeted expanding the roles of the blockchain platforms such as facilitating the development of decentralized applications.
- Aion represents the third-generation blockchains that are focusing on promoting blockchain networks being able to communicate without requiring users to join several networks.
- The Aion network is considered a breakthrough after years of hard work trying to lever the blockchain technology to the next stage. It has come at a time when cryptocurrencies have been suffering serious recession for poor interoperability, and many people are asking; "Will Aion help to take the blockchain network to the next level?” This will depend on how effectively the network and its features are implemented.
Beginner's Guide to Aion
Have you been looking for a cryptocurrency network with the potential to outdo other networks including Bitcoin? You have come to the right place because Aion might be that cryptocurrency network. The platform was designed by professionals who strongly believed that the blockchain niche was in a recession and needed to be restored on the right track.
Aion was crafted to fill the void of interoperability that has persisted for years and even threatened to pull the blockchain networks down. With Aion, people will no longer need to join multiple networks to send value. The network facilitates transparent, secure, and decentralized cross-chain transactions between blockchains.
To help you learn more about cross-chain operations, this guide digs deeper into the Aion system to establish what it is, where to buy, regulations, consumer protection, and history. No matter the question you have about Aion, this guide has the answers. Welcome to discover these and more about the network.
Where and How to Buy Aion?
Aion blockchain is one of the high potential blockchains in the market today. The fast-rising demand for its native coins is expected to keep growing its price and delivering high ROI to investors. To become part of this growth, you need to get the native tokens.
Aion tokens are sold in cryptocurrency exchanges. These are platforms that operate using the principles of forex markets but deal with cryptocurrencies as opposed to fiat currencies. Some of the top exchanges for trading Aion include Binance and Bitfinex.
Unlike the native blockchain networks, the exchanges are centralized and run under the local laws. Users are required to start by opening trading accounts and verifying them with personal information such as date of birth, phone number and proof of location.
Once the account is set, you will be required to deposit the funds in it to be able to purchase the preferred Aion tokens of choice. Remember that once the purchase is through, it is important to transfer the tokens to your wallet which is considered safer compared to the exchanges.
If you want to use the Aion network, one must have item is a cryptocurrency wallet. This is a digital location designed to help users store and manage their Aion tokens. However, it is important to appreciate that the wallet does not store the tokens literally. Instead, it operates as a set of codes that help you to access the tokens when running transactions.
The first code generated by Aion wallet is the private key. This is one of the most important codes that help to point at the tokens in the wallet. As the name suggests, the key is private and should never be shared.
The second code generated by the wallet is the public key. Unlike the private key that points at the tokens in the Aion network, the public key points at the wallet. This means that it acts as an address that you should give to people who want to send AION to the wallet.
The last code generated by the wallet is the seed phrase. Unlike the private and public keys, the seed phrase is only required when the user loses the private keys. It is, therefore, crucial that the seed phrase is stored securely because it might be the only way to recover lost Aion tokens.
Because Aion coin is an ERC-20 token, it can be stored in most ERC-20 compliant wallets. These include Ledger Nano S, Trezor, Jaxx, imToken, and MyEtherWallet.
Where to Buy Aion with Credit Card?
Do you have some funds in your credit card and want to buy Aion? The process is easy and direct using exchanges that support deposits with credit cards such as Bitfinex. The exchange is simplified to help users purchase their preferred quantities promptly. Note that unlike other crypto deposits on the exchange that are free, credit card based deposits on Bitfinex attract an additional fee.
Where to Buy Aion with PayPal?
There is no method that can be used to buy Aion with PayPal. PayPal has been blocking crypto related payments because the networks are considered direct competitors. For those with funds in their PayPal, the best method to use is withdrawing to their credit cards or bank accounts.
Note that this approach by PayPal could change after the management indicated that the policy is being reviewed to support cryptocurrencies. However, it is unclear how long the proposed changes will take.
How to Buy Aion with Wire Transfer?
Bank’s wire transfers are trusted by many people because the institutions are run professionally and within the legal frameworks. If you have funds in your bank account and want to buy Aion tokens, there are two methods you can use.
One you can buy directly using the exchanges that list Aion tokens and accepts wire transfers. One of these exchanges is Bitfinex. Note that the process will require you to by open an account in the exchange, deposit funds, and purchasing the preferred quantities of Aion tokens.
The other method is relatively long, but you have to follow it when targeting to buy the Aion tokens from an exchange that only accepts cryptocurrencies such as Binance. In this case, you will need to follow the following five steps.
- Start by acquiring an appropriate wallet such as Ledger Nano S that will hold your tokens securely after the purchase.
- Visit another platform such as CEX.io that accepts wire transfer and purchase an alternative coin such as Ether.
- Go to the targeted exchange that lists Aion tokens and open an account.
- Verify the account by providing additional personal information such as date of birth and proof of location.
- Visit the section for buying the digital tokens and select Aion tokens and pay with Ether.
Once the transaction is through, you should move the tokens to your wallet. The wallet is considered safer because only you got the private keys to access and use the tokens.
Where to Sell and Trade Aion?
Do you have some Aion tokens and want to sell and trade them? These operations can only be done in the exchanges that support the token. The exchanges are platforms that bring together sellers and buyers so that the token prices are driven by the market forces of demand and supply.
When selecting the selling and trading platforms, it is important to appreciate that they are the soft underbelly of the blockchain industry. Check any big hacking and loss in the blockchain industry, and the chances are that it took place in the exchanges. One of the latest attacks on exchanges was at a South Korea based exchange referred to as Youbit. The exchange was hacked in December 2017, millions worth of coins stolen and forced to file for bankruptcy.
To trade Aion tokens profitably and securely, here are some useful tips to help you pick the nest exchange.
- Look for the exchange that has installed good security measures such as 2-factor authentication and use of cold storage.
- The selected exchange should have a long list of coins to pair with Aion tokens for profitable trading.
- Only use the exchange that has good customer support for assurance that every enquiry will be responded to promptly.
- Pick the exchange that has a good user interface for ease of trading and running transactions.
- The best platform should have a reasonable fee to avoid all the profits being taken by the platform.
How Much Are the Transaction Fees of Aion?
One focus of many cryptocurrencies is to pull down the cost of transactions lower than what conventional financial services charge. Because of Aion tokens’ low value in comparison with other top coins such as Bitcoin Cash and Bitcoin, the transaction fee is still relatively low. You will only be required to pay 0.0021 AION ($0.0001) for transactions within the network. However, an additional fee is levied based when sending cross chain transactions depending on the involved blockchains.
since 2009, the cryptocurrency markets have continued to grow at a steady rate to cater for the fast-growing demand of cryptocurrencies. Though Aion has only been on the market for approximately one year, a lot of markets have accepted to list it. Here are some of these markets;
Binance is a cryptocurrency exchange that was started in mid-2017 by Changpeng Zhao and Yi He. The founders were concerned that trading cryptocurrencies was becoming very complicated and expensive. When they opened the trading platform, they also created a native token referred to as BNB.
Because of the harsh operational environment in Hong Kong, Binance relocated to Malta. About one year after launch, Binance portfolio had grown to hit more than 143 tokens including Aion and more than 350 trading pairs. It is also available in multiple languages and has a 24/7 customer support.
The transaction fee at Binance is 0.1%. This makes it one of the cheapest options in the market today. Indeed, you can even pull down the fee by 25% if you pay with BNB. The low transaction fee is meant to help popularize the token and make trading on the network easy and direct.
Binance offers users a large list of cryptocurrencies to allow them to trade profitably. Whether you want to trade AION against the more established coins such as Bitcoin or newer options such as Loopring, Binance is a great option. More people prefer it because it is prompt in bringing them new investment opportunities through ICOs.
The biggest challenge of using Binance is that it is a cryptocurrency only platform. This implies that if you want to buy AION with fiat, it will not be possible to do it directly on Binance. Instead, you will need to start from a different platform such as LocalBitcoins.com. The same lengthy process will also be required when withdrawing AION from Binance.
Bitfinex is a Hong Kong-based exchange started by Raphael Nicolle in 2012 to serve as a Bitcoin market. In two years after launch, the exchange had grown steadily to become one of the leading Bitcoin markets. To meet the growing demand, the exchange expanded the listed tokens to include emerging tokens such as AION.
Bitfinex is closely associated with Tether Company whose native token is Tether (USDT). The exchange uses Tether to provide liquidity because it is considered stable compared to other tokens because it is pegged to USD at a ratio of 1USDT:1USD.
The transaction fee at Bitfinex is between 0.1% and 0.2%. An additional fee is charged when making withdrawals. Though the fee is considered by the management to be within range, it is still on the higher end when compared to other exchanges such as Binance that only charge a flat fee of 0.1%.
One thing that makes Bitfinex outstanding from others is that it supports fiat currencies. The unique model makes it serve as a gateway to the blockchain niche. However, deposits on the network using wire transfer and credit cards attracts additional charges that make the platform very expensive.
The main challenge of the Bitfinex market is that it has a recurrent history of hacking. Even after the preventive measures that were installed on the exchange following the attack of 2015, it suffered another more serious attack in 2016. This has made people to question the safety of their tokens when working on the network.
This is a decentralized trading platform that allows users to operate without the need to register or verify trading accounts. The exchange was created in 2017 by Zack Coburn, and it soon became the ultimate point for trading Ethereum and ERC20 based tokens such as Aion. However, it is important to appreciate that EtherDelta is not part of the Ethereum system.
EtherDelta uses Smart Contracts to manage user’s deposits, trading, withdrawals and integration with their wallets. The transaction fee at EtherDelta is 0.0003 ETH. This makes it cheaper compared to most exchanges in the market today.
Traders using EtherDelta can trade their tokens against most ERC-20 tokens. This means they have a long list of tokens to pair Aion with. However, the traders are also disadvantaged by this operational model because they cannot trade tokens outside ERC-20 tokens.
As a decentralized exchange, EtherDelta only deals with cryptocurrencies. If you have cash in the bank or credit card, it is impossible to make a direct deposit or withdrawal. You will be required to start from another exchange such as Bitfinex or CEX.io that accepts fist currency.
Value of Aion
The value of Aion has grown steadily since launch in October 2017 to reach top 100 best cryptocurrencies based on the market cap by September 2018. In mid-September 2018, the market capitalization of Aion was $102.1 million at a price of $0.45 which placed it in position 66 on the Coinmarketcap list. The value makes Aion more valuable than other tokens such as DigixDao and GXChain that have market caps of $79.9 million and $76.5 million respectively.
The unique structure and design of Aion have made the community optimistic that the value will continue doing well in the coming years. It will be interesting to see how the price responds to the emerging market factors especially the looming regulations.
Is It Profitable to Invest in Aion?
Yes, Aion has been demonstrated to be a profitable network. A closer look at the Aion token price shift demonstrates that those who bought them during the ICO when the value was only $0.5 reaped close to 1000% ROI in early 2018. However, the price has been on a negative trend since then reaching a low of $0.44 by mid-September 2018. Even with the negative price shift, the unique structure of Aion has made crypto experts to hold the view that the price will grow and even surpass other top networks in the market.
Where to Spend or Use Aion?
Aion tokens can be used to pay for transaction fee on the native network when sending value. You can also use the token to pay transaction fees in the exchanges. As more dealers come out to accept digital tokens in their networks, people with Aion tokens will find it easier to walk into stores and spend them. However, you can still use them when only a different crypto is accepted by converting to the accepted coins before making a purchase.
Can Aion Grow to Become a Major Payment Network?
Yes, Aion can grow to become a major payment network. Like other blockchain networks, Aion was designed to facilitate faster processing of payment transactions. Many traders are likely to prefer it because their clients will be cleared faster from the payment queue. Other indicators that Aion can grow into a major payment network include;
- The Aion community has been growing steadily.
- The network is receiving endorsements from large corporations such as Deloitte and Netblock.
- It is promoting cross-chain interoperability.
- The applications are very diverse, and many businesses can join and use it to improve their systems.
- The platform puts a lot of weight on keeping transactions decentralized secure, and reliable.
How Does Aion Work?
The Aion development team predicted that the future of blockchains would look like a hub and spoke model. This is a system where distributed networks operate like a wheel with traffic running via spokes connected to the centre. Therefore, Aion developers created a multi-tier blockchain network to promote interoperability.
This network works like a computer system that offers dissimilar systems a reliable method for communicating with each other. The network also allows the participating blocks to design common chains between them for effective on-chain operations. The following are the main component of the Aion network:
- Connecting networks
- These are the protocols that allow public and private blockchains to communicate in the AION blockchain ecosystem. The networks are used to help with routing messages between various blockchains that are participating via a bridging protocol.
- The connecting networks also help to provide decentralized accountability to guarantee the correctness of all transactions flowing in the system. By taking control of the routing, it implies that the participating blockchains need not worry about difficult ties that might be involved.
- Inter-chain transactions
- The inter-chain transactions are designed to facilitate cohesive communication between different networks connected to the Aion network. For one chain to communicate to another, an inter-chain transaction is created on the source blockchain. It will then be moved via bridges, connecting networks and ultimately to the target blockchain.
- Note that for the transaction to get completed, the targeted blockchain has to accept it. If it gets rejected, it is reverted to the state it was before the transaction was initiated. This is possible because the inter-chain transactions follow a path from the source to the target.
- Bridges comprise of a chain of validators that help to sign and broadcast inter-chain transactions if they are sealed (confirmed by the source blockchain). They also help to inform the connecting network of the Merkel hash update.
- Participating networks
- Participating network is any network that meets the requirements of being part of Aion network. These networks are not limited to blockchain entities only. This implies that they could be databases, oracles, and even cryptlets. To become a participating network, a network is required to be decentralized & support atomic swaps, be able to make distinguish inter-chain and regular transactions, and be aware of the consensus protocol.
Does Aion Use Blockchain Technology?
Yes, Aion utilizes blockchain technology. The Aion is the genesis implementation of the Aion connecting network to be distributed fairly and openly. The primary goal is to help all the players to work on the network in a secure matter. The Aion blockchain uses virtual machine and consensus to ensure that:
- The participating blockchains with external entities can plug/connect to the Aion network for direct transactions without requiring users to join multiple networks.
- The blockchain provides robust inter-chain applications that facilitate smooth and secure interaction and transfer of messages.
- The blockchain facilitates the maintaining of a cohesive ecosystem where disputes are resolved correctly. For example, transactions that are rejected by the Bridge validators are sent back using the path they had followed.
It is also crucial to appreciate that the Aion tokens are based on the Ethereum blockchain. Therefore, when users who only want to send value on the Aion network initiate transactions, they are implemented on the Ethereum blockchain.
The Aion network employs a hybrid consensus mechanism referred to as proof-of intelligence. Under this system, only the validators can help to confirm transactions. Other nodes can submit themselves to become backers for a specific candidate using staking or solving/ proof-of-intelligence.
Once your selected candidate validates a transaction, you will get a share of the rewarded tokens based on the contributed stake or proof-of-intelligence. You can even join a mining pool that combines the mining power to increase the mining rewards. However, you need to appreciate that the rewards generated through pool mining are shared among the participating members.
What Are the Advantages of Aion?
When the development team announced that Aion network was ready, the crypto community knew that the project it had been waiting for had finally arrived. Here are some of the key advantages of Aion.
- The Aion has helped to address the problem of poor cross-chain interoperability that had threatened to pull down the blockchain niche. Now, People do not have to join multiple networks to send value from one network to another.
- Aion does not limit itself to the blockchain only. This operational model implies that more stakeholders can join and enjoy the extended functionalities of the system. The platform expects to attract bridge builders, app developers, start-ups and regular businesses.
- The platform allows users to operate in complete anonymity without worrying about third-party seizures. As an encrypted network, users enjoy sending value both in the Aion network and other blockchains without worrying about getting discovered by third parties.
- The transactions are cheaper compared to the conventional financial organizations and even top blockchains. Because the transactions are run in a fully decentralized manner, the profit-seeking organizations such as banks are bypassed to make the transactions cheaper and reliable.
- The development team is highly committed to improving the network. This is the reason why a lot of people are having faith in the network and making its value to continue growing progressively.
What Are the Risks of Aion?
While every indicator is pointing at the greatness of the Aion network, it is important to compare the pros and risks before making your decision to join. Here are the risks that you need to know about.
- The network is relatively new. Even though the platform has a very impressive demonstration of the features to be implemented, it will take some time before they can be confirmed to be stable and reliable. In many cases, it takes about five years before a crypto network can be confirmed stable and reliable.
- The platform is very ambitious. Though this approach is good to help take the industry to the next level, questions have emerged about the ability to manage cross-chain networks. Many people have indicated that Aion could have taken a narrower approach and expand over time.
- The looming regulations. Like other blockchain networks, Aion is faced by the threats from the looming regulations. With more countries threatening to pass harsh legislations, the future of most blockchains including Aion looks uncertain.
- The danger of cyber attacks. Cryptocurrencies have attracted a lot of interest from hackers because of the rising demand for digital coins. Like other cryptocurrencies, the AION tokens can be stolen through attacks at the native network level, wallet, or even the exchanges.
- High volatility. A closer look at the performance of AION in the market reveals that at one point (late December 2017 and early Jan 2018), the token shot to a high of $11.5 before falling sharply to less than $3 in the subsequent month. This is a demonstration of high volatility. Such extreme price swings make it very difficult for investors to make the right predictions.
What Happens if Aion Gets Lost?
It is not uncommon to hear people say that their tokens have been lost. It can be very devastating especially when users have taken a lot of time to mine the tokens. To avoid losing your Aion tokens, the first step is to understand what happens when they get lost. At this point, you need to appreciate that the tokens can only exist on the native networks.
- Loss through damage to the wallet: The tokens are still in the network under your signature but in a dormant state. If you can reinstall the wallet, the tokens will be restored.
- Loss through forgetting the private keys: In this type of loss, the tokens are dormant in the network but still under your name. The good thing is that they can be restored if you can manage to regenerate the right key.
- Loss through sending to the wrong address or hacking: These two types of losses imply that the Aion tokens are still in the network but under a different owner. The transactions are completed, and there is no method that can be used to restore them.
The growth of cryptocurrencies has irked many administrations with most of them vowing to pass very harsh regulations. They feel that the anonymity and decentralization in most cryptocurrencies such as Aion will drive the tax-paying and legal organization such as banks out of operations. The first jurisdiction to note and raise the alarm about the threats that come with cryptocurrencies was the United States. Immediately Bitcoin core was released in 2009, the Federal Bureau of Investigation (FBI) noted that the espoused anonymous operations could easily be used by criminals to fund terror. But the United is not alone.
More countries have come out to indicate their dislikes or reservations about cryptocurrencies. In the European Union, the EU commission has cautioned its citizens that they risk incurring total losses because cryptocurrencies do not have consumer protection. China, India, Argentina, and Israel among other jurisdictions have also noted the threats that come with cryptocurrencies. However, none of these countries had passed a cryptocurrency regulation by the third quarter of 2018.
A closer look reveals that most of these countries have been at the frontline promoting the fintech sector that ultimately yielded cryptocurrencies. A good example is Hong Kong. To remain the indefatigable leader in the financial sector, Hong established the Fintech Facilitation Office (FFO) that has been supporting fintech and even blockchain-based applications. Other factors blocking the installation of cryptocurrency regulations include;
- The blockchain technology is advancing at a very fast pace and forming many countries to play catch-up.
- Even if the jurisdictions pass the requisite laws, it will still be difficult to effect because the networks are completely decentralized.
- The blockchain networks have proven to be the ultimate solution to problems such as the high cost of sending value and big data.
Note that even though these countries appear to take longer crafting the crypto laws, there is no doubt that the regulations will finally dawn. Therefore, you need to be prepared about what to do when the laws finally come.
Is Aion Legal?
Aion is legal in most jurisdictions because none of them had installed a cryptocurrency regulation by the third quarter of 2018. But you need to appreciate that many of these jurisdictions have indeed started the process of installing the cryptocurrency regulations. Here is a closer look at the legal status of Aion in various jurisdictions.
(1) The United States
The United States approach to cryptocurrencies is to use the current regulations while pushing for international protocols. Locally, the US has been working on crafting the right definition of cryptocurrencies to fit them within the current securities and properties jurisdictions. The Securities and Exchange Commission (SEC) has indicated that cryptocurrencies could be considered securities if they adhere to the Howey Test. However, the Commodities Futures and Trading Commission (CFTC) took a different approach and indicated that cryptocurrencies should be considered properties. Lack of a clear definition of cryptocurrencies has been blamed for the delayed crafting of a legal framework.
With no clear guideline coming from the federal level, individual states are now resorting to localized legal solutions to deal with cryptocurrencies. In April 2018, Arizona passed HB 1091 that allows residents to pay taxes using cryptocurrencies such as Aion. When a resident pays taxes using cryptocurrencies, they are converted to USD immediately and credited to his account.
At the international level, the US administration is seeking cooperation with other countries to forge a common front. In January 2018, the Treasury Deputy Director, Sigal Mandelker, took a tour of the Far East to try and forge a common front with the administrations of crypto giants about cryptocurrency regulations. After visiting South Korea, China, and Japan, Mandelker pointed out that cryptocurrencies risked becoming the next Swiss accounts if they are not regulated.
Aion is legal in China. China is one country that has not had kind words to describe cryptocurrencies. Instead of working on a specific regulation, China has opted to use direct orders to gag cryptocurrencies and related operations. Though the country had emerged as the early crypto giant the first few years after the launch of Bitcoin, everything started changing in 2014 when Banks were ordered to close accounts that rode on virtual currencies.
In September 2017, China banned all ICOs and indicated that they were created to defraud its citizens. All the exchanges that had supported the ICOs were forced to issue full refunds to investors. Now, the country is blocking even international exchanges from accessing the local markets to stem cash outflows and corruption.
The clampdown of the Beijing administration has seen many cryptocurrency related ventures opting to shift to more supportive or neutral countries. One example of such ventures is Binance cryptocurrency exchange that relocated to Malta. Bitmain, a cryptocurrency mining company also relocated its operation base from China to Singapore and Switzerland.
Aion is legal in Venezuela. Venezuela is one country that has demonstrated its strong desire to support and nurture cryptocurrencies. The country has gone ahead to craft its cryptocurrency referred to as petro cryptocurrency. Now, the country is implementing the petro cryptocurrency alongside the national currency as legal tender.
Many people hearing about Venezuela’s strong support for cryptocurrencies are left wondering what the driver for the strong support to cryptocurrencies is. Venezuela has attracted international focus because of its notoriety in human rights abuses under the leadership of President Maduro. This has attracted serious sanctions from the US and other international community.
To circumvent these sanctions, Venezuela opted to use blockchain technology. As an encrypted and decentralized network, countries that want to buy petroleum from Venezuela can now buy comfortably without raising a red flag. So successful has been the Venezuela blockchain network that the president wants it to be adopted as as alternative legal tender.
To try and replicate the same model, countries such as Russia and India have expressed the desire to study how Venezuela has been operating the national blockchain. Experts have indicated that more countries could join the Venezuela model to take advantage of direct trading and operate with no limitations.
Aion is legal in Russia. Russia is one of the countries that have made good their threats to create cryptocurrency regulations. Before 2017, Russia had opted for a hands-off approach to cryptocurrencies. However, this changed early in 2018 when the finance ministry indicated that it was impossible to tell whether those who accepted payment in cryptocurrencies such as Aion were committing a crime.
By the close of January, the ministry of finance and central bank released the digital financial assets draft bill. This bill is considered to be the Russian government stand on cryptocurrencies. However, it is not until the State Duma discusses it and the president signs will it become a law.
Under the draft law, digital assets include cryptocurrencies and tokens. It also considers them as properties. This solidifies the Russian administration’s earlier stand that those who accept cryptocurrencies for payment should be considered to be committing a crime.
To release digital assets, the draft law requires the respective businesses or startup to be registered by the right Russian authorities. Additional scrutiny is also required before tokens can be issued. The authorities are required to evaluate the business model, pricing, and token price before giving a go-ahead for ICOs to be held and tokens released into the market.
The draft law further requires the exchanges to be registered and strictly adhere to Know Your Customer (KYC) strategies. This implies that traders will no longer be allowed to operate anonymously if the draft becomes law.
The cryptocurrency and fintech community in Russia has already raised the red flag and threatened to move to other countries because the draft is punitive. The community indicates that the law could water down progress achieved in the fintech niche for many years if passed in its current form.
Aion and Taxes
The topic of cryptocurrency and taxes is probably the most complex in the industry today. Many people in cryptocurrencies argue that they are covered and can operate without worrying about paying taxes. However, the main question that experts are asking is; “Is the encryption provided in cryptocurrencies ample to shield users from authorities?”
The main reason for the creation of cryptocurrencies such as Aion was not to facilitate tax evasion. Rather, they were designed to help users enjoy greater control of their funds and become part of the network’s governance system.
In the United States, the Credit Karma indicates that only a few people in cryptocurrencies pay taxes related to trading them in the exchanges. The same case is evident in other states such as China, Israel and the UK. Though Aion and other network have invested so much in promoting privacy, the anonymity cannot last forever. When new technologies get discovered, the chances are that you will be discovered and cases of tax avoidance are likely to be instituted against you.
Instead of waiting for the law to catch up with you, the better method is operating within the existing legal framework. Here are some useful tips that can help you enjoy all the benefits of Aion without breaking the laws.
- Capture the details of Aion related trading when filing returns.
- Look at the income from Aion related operations as taxable revenue.
- For traders accepting Aion for payment, consider redefining the books to cater for the new type of income.
- If you find it difficult to adjust the system well, consider working with a tax professional.
Does Aion Have a Consumer Protection?
Aion does not have consumer protection. The blockchain platform runs as a decentralized network of nodes spread across the globe. Unlike the centralized organizations such as banks that allow people to make enquiries and even launch complaints when not satisfied, Aion is owned and run through consensus by nodes in its network. This implies that there is nowhere to take complaints to. Note that you cannot even run to a court of law for justice because the cryptocurrencies are not regulated.
Is there a way that one can operate in the Aion network securely? As a node or user, here are some useful security tips to help you remain secure on the network.
- Make sure to keep the private keys and seed phrase secure.
- Ensure that your wallet, Aion client and computer are always up-to-date.
- Designate one computer for Aion operations only.
- Only use the exchanges that have demonstrated the commitment to keep user coins as secure as possible.
- Make sure to always keep the Aion tokens in cold storage when not trading them in the exchanges.
- Select the cryptocurrency wallets such as Ledger Nano S that act as cold storage.
Illegal Activities with Aion
<When cryptocurrencies were designed, they became a special preference for criminals because of the enhanced anonymity through encryption. Criminals prefer to use the tokens for scams and Ponzi schemes because they can hide under the cover of anonymity to avoid getting caught. However, no illegal activity had been reported with Aion by the third quarter of 2018.
Is Aion Secure?
When they were creating the Aion platform, the founders decided to look for an alternative consensus mechanism that could help to keep the expanded network more secure. Therefore, they settled for a hybrid algorithm referred to as proof-of-intelligence. The system involves generating unique puzzles that have to be solved using proof-of-intelligence algorithm to generate proof that is submitted to back a specific validator. This is the main method used to solve denial-of-service attacks in the network.
The development team works on progressively updating the network to ensure that any vulnerability identified in the system is addressed immediately. This is one of the methods used to keep attackers away. Other methods used to keep the network safe include advanced encryption and basing the native tokens on the Ethereum blockchain.
Is Aion Anonymous?
Yes, Aion is an anonymous network. All the transactions on the network are encrypted so that no unauthorized user either on or off the network can get access to your info. Once you have initiated a transaction, it gets encrypted so that only the target can decrypt it to get the message you sent.
While the use of advanced encryption is considered highly effective, the community feels that the transactions at Aion could become easily accessible by following the trails. Instead, the community is calling for the platform to implement advanced strategies for enhancing anonymity such as the ring signatures and of Stealth addresses.
Has Aion Ever Been Hacked?
Aion has never been hacked. When the founders and development team created Aion, they knew the looming dangers of getting attacked. The development team made sure that the core code was strong and it progressively updates the network to close all the gaps and vulnerabilities.
How Can I Restore Aion?
If you have lost your Aion tokens, do not just give up because it might be possible to restore them. If you lost the tokens by forgetting the private keys, it is possible to restore them by regenerating the keys using the seed phrase.
For those who lost their tokens through damage to their wallets, restoring them will require reinstallation of the right wallet from a backup. Remember that some wallets such as Trezor allow users to get a similar new wallet and reconciling it with the seed phrase to restore the lost tokens.
If the tokens were lost through hacking or sending to the wrong address, there is no method that can be used to restore them. They have been irreversibly transferred to new owners.
Why Do People Trust Aion?
The fast rise in the number of cryptocurrencies in the market has made it difficult for investors and cryptocurrency enthusiasts to pick the ideal networks. To select the exchanges to use, everything comes down to trust. Here are some of the things that are making people trust Aion.
- The network is led by a tech team with great enthusiasm about the blockchain technology success.
- The network has received a lot of support from large corporations including Deloitte, Goldenwise, Transform Group, Netblock, and New Alchemy.
- The blockchain is marketed as the next generation platform which implies that it is better than most platforms out there including Ethereum and Bitcoin.
- The Aion network has a clear roadmap that includes impressive features such as the proof-of-intelligence algorithm.
- The value of the Aion has continued to perform very well in the market. By September 2018 the market capitalization had grown to $102.1 million putting it on position 66 on Coinmamrketcap website.
History of Aion
The history of Aion can be traced back to mid-2017 when Mathew Spoke started working on the platform to address poor cross-chain interoperability between blockchains. Here are some of the milestones that characterize the blockchain Aion network.
- The tokens were released in October 2017 during an ICO that involved three types of sales; private sale, pre-sale, and public sale. The price of the token during the sale was between $0.5/AION and $1AION.
- The roadmap of Aion comprises of two phases. The first phase started in 2018 and involved the release of the modified proof of work (mPoW) consensus algorithm, intercommunication channel, and the virtual machine. This phase will be largely about the internal Aion mechanics. Towards the end of 2019, Aion expects to release the proof-of-intelligence consensus algorithm.
- The second phase will be targeted at promoting interoperability. The development team will add the participating network bridging, complete validator nomination, and Aion virtual Machine version two.
- The history of AION price shows impressive growth. In October after the token release, AION traded below $1 mark until the end of November when it broke above the $1 mark. The price continued on an upward trend that culminated in hitting $11.1 mark on January 10th 2018, the highest point in its history. This was an impressive growth of more than 900%. However, the price took a downward trend dropping sharply to $2.63 by February 7th 2018. It remained within that range up to the close of April 2018 when it took another steady downward decline to $0.44 in mid-September 2018.
Who Created Aion?
Aion was created by Mathew Spoke in 2017. When he created the network, Mathew had more than four years of experience in the blockchain network. He is also known as the founder and the CEO of the NuCO; a company that works on the development of modular, secure, and scalable blockchain operations.
To make the project complete, Mathews brought in experts such as Kesem Frank who serves as the company’s COO and head of development. Other big names in the Aion include Jin Tu who is an expert in enterprise engineering and Peter Vessenes who cofounded Bitcoin Foundation.
Aion Videos and Tutorials
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