Emily Clarke

What is Aurora in Crypto?

Blockchains are the backbone of the cryptocurrency movement. In fact, without blockchains, the concept of decentralized crypto simply doesn't work. This is because a blockchain serves as a virtual ledger where transactions are recorded, allowing coins or tokens to be accounted for. This prevents cryptocurrency from being created out of thin air, meaning markets and value cannot be manipulated.

There are several blockchains available to crypto investors, including Ethereum, Solana and NEAR. To transition to various blockchains, in-between solutions are used. In the case of the NEAR blockchain, Aurora can help. Aurora is designed to move crypto investors to blockchains like the NEAR protocol, and an Aurora oracle can be used to execute Solidity smart contracts using real-time data from information sources outside the NEAR blockchain.

What is the Advantage of Aurora for Crypto Investors?

Aside from being able to use an Aurora oracle to facilitate Solidity smart contracts, another advantage of using Aurora is the ability to take advantage of layer-2 technology. Since the NEAR blockchain is a layer-1 network, it serves as the "mainnet" or the distributed database. This is where the foundation of a blockchain lives.

In the layer-2 technology used in Aurora, data is transferred through the Aurora Virtual Machine. When combined, both layers add security and stability to open systems interconnection models. Layer-2 is also where the Aurora Virtual Machine provides support for compressed encoding. This is especially important when dealing with encrypted data that can contain huge numbers of characters in an encryption sequence. The processing power required to handle this kind of data is vast, so data transfer speed plays an important role in facilitating transactions.

Should You Use Aurora?

As for whether Aurora is something the average crypto investor should be concerned with, this all depends on your goals for investing. If you plan to move between blockchains often, Aurora may be of interest to you. If you're the type of crypto investor who wants to simply buy some coins and hold them, Aurora may not be as big of a benefit to your long-term strategy.

Author Resource:-

Emily Clarke writes about global equities markets, commodities prices, forex rates and more. You can find her thoughts at data analytics blog.