Conflux

Introduction to Conflux

Conflux is a public blockchain that operates within China’s regulatory framework, making it unique among major cryptocurrencies. Using a novel Tree-Graph consensus protocol based on a DAG-like structure, Conflux achieves high throughput while maintaining security and decentralization.

Founded by Fan Long, a former professor at University of Toronto with research from Tsinghua University, Conflux has partnerships with Chinese government entities and major corporations. The network serves as a bridge between China’s blockchain development and the global crypto ecosystem.

China Regulatory Positioning

Unique Compliance

Operating in China:

• Regulatory approval
• Government partnerships
• Shanghai cooperation
• Compliant operation

Bridge Role

Connecting ecosystems:

• Chinese enterprises
• Global crypto
• Cross-border capabilities
• Regulatory navigation

Strategic Importance

Market access:

• Large Chinese market
• Enterprise adoption
• Government projects
• Mainstream integration

Tree-Graph Consensus

Technical Innovation

Novel approach:

• Beyond linear blockchain
• Parallel block processing
• DAG-like structure
• High throughput

How It Works

Consensus mechanism:

• Multiple blocks processed
• Tree-Graph ordering
• GHAST protocol
• Finality achieved

Performance Benefits

Throughput advantages:

• 3,000+ TPS
• Fast finality
• Scalable design
• Maintained security

How Conflux Works

Dual Space Architecture

Two environments:

• Core Space: Native Conflux
• eSpace: EVM compatible
• Interoperability
• Developer choice

eSpace

Ethereum compatibility:

• Full EVM support
• Solidity smart contracts
• Ethereum tooling
• Easy migration

Core Space

Native environment:

• Tree-Graph optimized
• Higher performance
• Native features
• Full capabilities

Technical Specifications

Metric	Value
Consensus	Tree-Graph (PoW/PoS)
TPS	3,000+
Block Time	~0.5 seconds
Token	CFX
Spaces	Core, eSpace
Status	China-compliant

The CFX Token

Utility

CFX serves multiple purposes:

• Gas Fees: Transaction costs
• Staking: Network security
• Governance: Protocol decisions
• Storage: Data storage fees

Tokenomics

Supply dynamics:

• Mining rewards (PoW)
• Staking rewards (PoS)
• Storage collateral
• Ecosystem incentives

Hybrid Consensus

PoW + PoS:

• Mining produces blocks
• Staking provides finality
• Combined security
• Transition path

Enterprise Adoption

Chinese Partnerships

Major relationships:

• Shanghai government
• China Telecom
• Orion Protocol
• Various enterprises

Use Cases

Enterprise applications:

• Supply chain
• Digital collectibles
• Government projects
• NFT platforms

Real World Assets

Tokenization:

• Chinese RWA projects
• Real estate tokens
• Asset digitization
• Regulatory framework

Ecosystem Development

DeFi on Conflux

Financial applications:

• DEXs (Swappi, others)
• Lending protocols
• Yield platforms
• Growing ecosystem

NFTs and Gaming

Entertainment:

• NFT marketplaces
• Gaming projects
• Digital collectibles
• Creator economy

Developer Tools

Building support:

• Dual space SDKs
• Documentation
• Developer programs
• Technical support

Competition and Positioning

vs. Other Chinese Chains

Chain	Compliance	Global
Conflux	High	Growing
Neo	Medium	Established
VeChain	Enterprise	Enterprise

vs. Global L1s

Chain	China Access	TPS
Conflux	Yes	3,000+
Ethereum	Restricted	~30
Solana	Restricted	65,000

Differentiation

Key advantages:

• China regulatory access
• Tree-Graph performance
• Dual space flexibility
• Enterprise relationships

Challenges and Criticism

Geographic Concentration

China dependence:

• Regulatory reliance
• Policy risk
• Market access
• Global expansion

Ecosystem Size

Development state:

• Smaller than major chains
• Limited DeFi TVL
• Developer attraction
• Network effects

Perception

Market view:

• China association
• Regulatory uniqueness
• Trust considerations
• Market positioning

Recent Developments

eSpace Growth

EVM adoption:

• More deployments
• DeFi growth
• Developer migration
• Ecosystem expansion

Partnership Expansion

Business development:

• New enterprise deals
• Government projects
• International outreach
• Ecosystem building

Technical Progress

Protocol development:

• Performance improvements
• Feature additions
• Developer experience
• Network stability

Future Roadmap

Development priorities:

• Ecosystem: Protocol growth
• Enterprise: Partnership expansion
• Global: International presence
• Technical: Performance improvements
• Adoption: User growth

Conclusion

Conflux occupies a unique position as a public blockchain operating within China’s regulatory framework. The Tree-Graph consensus provides genuine technical innovation, while the dual-space architecture offers developer flexibility.

The China market access provides opportunities unavailable to other global chains, though also concentrates regulatory risk. Enterprise partnerships demonstrate real-world adoption potential.

For applications targeting the Chinese market and for enterprises seeking compliant blockchain infrastructure, Conflux provides unique access. Success depends on balancing Chinese compliance with global ecosystem growth.