Do you remember Solana’s 2021 price rally? From $2 in Jan 2021, SOL soared up to $259 in 8 months and this was not just because of the bull rally. What contributed to such a massive price action was Solana’s ambitious design that aims to solve the long-prevailing blockchain trilemma.
But in 2022 Solana faced numerous issues with network instability and the users lost their faith in Solana. Does that mean the blockchain trilemma will never be solved? It is time to look at it now because as soon as the market heats up, Aleph Zero will explode and it could be the next Solana with of course no blockchain halts and downtimes.
What is Aleph Zero?
Aleph Zero is a privacy-enhancing public blockchain with instant finality. Why are we talking about it today? Because on June 22nd, its smart contracts are to debut on Aleph Zero’s testnet. That means developers would be able to build the next big thing.
A crucial element in implementing a stronger democratic foundation for proof-of-stake blockchain protocols involves the element of rotating committees.
Here's how it will work in the Aleph Zero network: https://t.co/DKEjUMBPrl$AZERO
— Aleph Zero (@Aleph__Zero) June 17, 2022
Nowadays, Azero is highly traded on MEXC Exchange with whom we are currently running a $6,699 bonus giveaway campaign. Check out this link to know more.
Coming back to Aleph Zero, I will dive deep into it but let’s first quickly understand why solving the blockchain trilemma is so important.
How does Aleph Zero Solve the Blockchain Trilemma?
The term “blockchain trilemma” was coined by Ethereum co-founder, Vitalik Buterin, to describe three core issues that developers face when creating blockchains. The three elements of the blockchain trilemma are decentralization, security, and scalability. The term means that nowadays, one of these must be sacrificed to successfully implement the other two in any blockchain. Unfortunately, with the current technology, no blockchain can have the three pillars. This is where inefficiencies creep into blockchain networks.
Therefore, at the core of Aleph Zero’s value proposition is DAG (Directed Acyclic Graph) algorithm which works as a blockchain but is not a blockchain. Let’s find out in a very simple way as to how using DAG, Aleph Zero solves the blockchain trilemma. Let’s analyze them:
A DAG protocol like Aleph Zero has some serious advantages over traditional, PoW blockchain. It produces its consensus much faster than any other blockchain. As a result, it can maintain high transaction speeds when operating on a high scale, something that Bitcoin’s blockchain could not achieve.
Also, Aleph Zero has already proven it on a test network of 128 nodes where it reached 100,000 transactions per second. That’s the power of DAG and Aleph Zero’s DAG solves the scalability issue from the blockchain trilemma.
— Antoni Zolciak (@AntoniZolciak) June 11, 2022
Aleph Zero’s DAG employs AlephBFT which is a Byzantine Fault Tolerant consensus protocol. Through AlephBFT, it ensures that the communication between nodes remains effective and transparent despite the presence of malicious nodes.
Also, additional security is guaranteed by employing the element of asynchronicity. This means that the network will work smoothly and retain data correctness even if some parts of the network are down. Implementing asynchronous properties to BFT is a step forward to ensure maximum security.
Usually, it’s not easy to decentralize DAG to the same level as blockchain. But Aleph Zero is working on implementing a mechanism that chooses rotating committee members randomly. In the testnet, they are already testing it using 128 nodes but on the mainnet, they are targeting a much higher number so the randomness will be more and the network will become more decentralized.
With more scalability, security, and decentralization, it seems Aleph Zero has cracked the code for solving the blockchain trilemma but there’s more to the Aleph Zero ecosystem.
Aleph Zero Ecosystem
The Aleph Zero ecosystem has three main products.
1) Aleph Zero Infrastructure Layer: This is the Layer 1 blockchain. They use a Proof-of-Stake (PoS) consensus mechanism. The DAG-based consensus protocol (AlephBFT) powers this. This means, that Aleph Zero doesn’t need mining. In other words, transactions are low-cost or even free. This makes DAGs suitable for IoT apps. DAGs are also ideal for daily small crypto transactions. All because of the low transaction costs.
$AZERO is building a multichain world.
An original, DAG-based consensus protocol
Decentralized file storage / IPFS
3. Private Smart Contracts
Scalable, self-executing, private smart contracts
Decentralized Exchange (DEX) & Dark Pool pic.twitter.com/q2d7lpedlx
— The Blockchain Media | We are hiring! (@THECHAINMEDIA) May 31, 2022
2) Liminal Privacy Layer: This is where Aleph Zero uses the ZK-Snarks and the sMPC for privacy. It’s a hybrid solution, and that is precisely what makes it stand out.
The ZK-Snarks pass a secure and secret key between users. However, what makes them so interesting is this. They don’t reveal the information. There is also no interaction between the prover and verifier. Zcash, another privacy chain, also uses the ZK-Snarks. Also, sMPCs secure data through many computers. They can’t access data without the complete accord with consensus.
In the meantime, all blockchains that bridge to Aleph Zero can use Liminal. It acts as a multichain standalone privacy layer.
3) Common Wallet: This is a DEX and a Dark Pool. The latter are private exchanges, and the general public has no access to them. One of the key features of Common is that it eliminates front running. Front running is when your transaction is in a queue. A bad actor knows the details of your transaction and can influence the price of this future tx.
4) Aleph Zero Cloud: Decentralized file storage / IPFS
5) Private Smart Contracts: These are scalable and self-executing. There’s also the blockchain ecosystem of Aleph Zero. It’s a fairly new project, so it’s also a small ecosystem. Nonetheless, you gotta start somewhere.
— Aleph Zero Ecosystem Capital (@AzeroEcosystem) June 10, 2022
Currently, the team has over 30 members. You can find their names on the website and in the whitepaper so the team is not anonymous which is fundamentally a very good point for any crypto project. They call Zug, Switzerland their home, a crypto-friendly country.
Also, companies or organizations team members worked for, include:
- IBM, Stellar, Codewise, Capgemini, ING Bank.
- TIBCO Software, Google, Uber, or Riverbed Technology.
All signs of a world-class team with their four co-founders:
- Matthew Niemerg, Ph.D.—CEO
- Michal Swietek PH.D.—CPO
- Antoni Zolciak—COO and CMO
- Adam Gagol Ph.D.—CTO
AZERO is a native coin that powers the Aleph Zero mainnet Also, AZERO has a current price of $0.7124. Their market cap is a self-reported figure of $48 million. They also have a self-reported circulating supply of 71 million tokens. It’s an inflationary token, so there’s not a max supply.
Although the current total supply is around 300 million. Each year they add 30 million tokens as staking rewards. Also, over 24 hours, the token price is down by 0.8%. The ATH was at $3.09 on April 15, 2022. So, just over two months ago.
Also, there are only 3 exchanges where you can buy the Azero token. MEXC was the first exchange that offered this token, back in January. They also boast the highest 24-hrs trade volume with $625,500.
Moreover, in March, Gate.io offered Azero. Their 24 hrs trading volume stands at $250,600. The last exchange to join is Hoo in April. They have a 24 hrs trading volume of $237,784. In addition, the digital money platform Uphold listed Azero on June 16th.
MEXC exchange is undoubtedly a better exchange to buy Azero. Because high trading volume leads to fairer prices. Therefore, You can sign up with MEXC through this link and get a 10% straight away lifetime discount on any trades you make. Also, you get to win a part of the $6,699 in bonuses.
Let’s take a look at the overall Smart Contract Platform (SCP) sector which had a $750 billion market cap in Q1, 2022. There are almost 90 SCPs on the scene. Combined, they have a 35% digital asset market share. Out of this, Ethereum has a 60% market share. Furthermore, the top ten platforms represent 89% of the market cap. In other words, Aleph Zero is in a competitive market.
- Other DAG-based platforms: For instance Fantom, IOTA, and Hedera Hashgraph.
- New Layer 1 blockchains: Fuse Network, Concordium, or ParallelChain.
- Privacy blockchains: Zcash, Monero.
- Hybrid blockchains: Ripple, Kadena, or Dragonchain
Are you confused about #Private blockchain vs #Privacy #blockchain? Is there any difference? Yes, and it's not subtle! Wanna learn about privacy blockchain and one of its pioneers – Aleph Zero? Follow the link to read our exclusive interview https://t.co/4KecTvksiI
— Sisi (@brandlips) June 6, 2022
So, as we can see, there is plenty of competition in various fields. However, Aleph Zero is different for two reasons and these are its biggest selling points:
- State-of-the-Art Consensus: With a unique peer-reviewed ABFT consensus mechanism. That is short for Asynchronous Byzantine Fault Tolerant. Honest nodes of a network guarantee to agree on the timing and order of a set of transactions. Fairly and securely.
- A Universal Privacy Layer: Liminal, based on the ZK-Snarks and sMPC.
In describing their roadmap, Aleph Zero keeps it simple. They either have something done, in progress, or it’s coming up. Simple, easy, and straightforward. So, let’s have a look at their roadmap.
Nowadays, phases 1 & 2 are completed. This included the peer-reviewed consensus protocol and Liminal. However, in progress is the following;
- Phase 3: Among others, native token transfers. Rust implementation of AlephBFT consensus.
- Phase 4: For instance, validator elections. Basic smart contract capabilities
- Phase 5: Bridges 1.0: Kusama, Ethereum, a custom web wallet, and more.
- Phase 6: For example, Bridges 2.0: Polkadot, Cosmos, and BNB. Experimental transaction fees. Free or near-free fees.
Here we are, at the end of this new crypto gem, Aleph Zero (Azero). Among others, we introduced you to their consensus mechanism that stands out. We also showed you a variety of use cases.
Therefore, they claim to have solved the Blockchain Trilemma. They are fast, decentralized, and scalable. Also, you had a look into how they set up their ecosystem. With the Aleph Zero Infrastructure Layer. But also the Liminal Privacy layer and their Common Wallet.
Then, we looked at the team, roadmap, and tokenomics. The team is on the ball and keeps meeting their goals. All excellent signs. We can conclude that this is an undervalued project; otherwise, we wouldn’t label it as a gem.
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