What is Conflux (CFX)?

Deep Dive

1. Technology & Architecture

Conflux uses a Tree-Graph consensus mechanism that processes blocks and transactions in parallel, achieving up to 15,000 transactions per second (TPS) post-upgrade (Conflux 3.0). This hybrid model merges PoW for security and PoS for finality, balancing decentralization with speed. Its Ethereum Virtual Machine (EVM) compatibility allows developers to deploy Solidity-based smart contracts, while features like fee sponsorship let users transact without holding CFX.

2. Tokenomics & Governance

The CFX token powers network operations:
- Transaction Fees: Paid in CFX.
- Staking: Miners and validators earn rewards (4% annualized).
- Governance: Holders vote on protocol upgrades.
Total supply is capped at 5.16 billion CFX, with all tokens already circulating.

3. Ecosystem & Strategic Focus

Conflux emphasizes cross-border finance and regulated use cases:
- Stablecoins: Partnered with AnchorX to launch AxCNH, an offshore yuan-pegged stablecoin for Belt and Road Initiative transactions.
- Enterprise Adoption: Collaborations with China Telecom, McDonald’s China, and government-backed projects like blockchain SIM cards (BSIM).
- Upgrades: Conflux 3.0 (2025) introduced AI integration, enhanced throughput, and RWA tokenization tools.

Conclusion

Conflux positions itself as a bridge between decentralized innovation and regulatory frameworks, leveraging its technical scalability and strategic partnerships in Asia. As it expands into stablecoins and institutional use cases, a critical question emerges: Can it balance global decentralization goals with the demands of a regulated market?