Everyone wants to solve the blockchain trilemma. @Aleph__Zero, an under the radar project does this in their own unique way - by prioritizing blockchain privacy.
🧵Here's why #AlephZero will revolutionize how blockchains work entirely. If you're reading this anon, you're early.
🧵Here's why #AlephZero will revolutionize how blockchains work entirely. If you're reading this anon, you're early.
1/28 We forget that the transactions on a blockchain can be viewed by anyone, making them susceptible to hacks.
Large enterprises also risk competitive advantage by using public blockchains.
AZERO solves this problem allowing the integration of public and private ledgers - how?
Large enterprises also risk competitive advantage by using public blockchains.
AZERO solves this problem allowing the integration of public and private ledgers - how?
2/28 THE TECH
This is done through a combination of PoS and DAG consensus mechanisms, ZK-Proofs and sMPCs. What do these mean?
Let's take a look at AZERO's consensus mechanism.
AZERO combines the traditional Proof of Stake (PoS) consensus with Directed Acyclic Graphs (DAGs)
This is done through a combination of PoS and DAG consensus mechanisms, ZK-Proofs and sMPCs. What do these mean?
Let's take a look at AZERO's consensus mechanism.
AZERO combines the traditional Proof of Stake (PoS) consensus with Directed Acyclic Graphs (DAGs)
3/28 You probably already know what PoS is, so let’s just skip over to DAGs.
They're data structures which look like graphs with multiple branches and nodes, which (super simplified) processes transactions faster & at lower fees than traditional linear blockchains.
They're data structures which look like graphs with multiple branches and nodes, which (super simplified) processes transactions faster & at lower fees than traditional linear blockchains.
4/28 The combination of both a PoS and DAG system makes AZERO's, as most blockchains are only either one of the two.
With a DAG as its intermediary structure, AZERO is able to achieve a transaction time of 0.416 seconds and a TPS of 89,600
More info at:
alephzero.org/blog/what-is-t…
With a DAG as its intermediary structure, AZERO is able to achieve a transaction time of 0.416 seconds and a TPS of 89,600
More info at:
alephzero.org/blog/what-is-t…
5/28 The downside of DAGs is that they’re not as decentralized as PoS chains, AZERO solves this by appointing a rotating committee of random nodes (128 minimum) to validate transactions.
This allows Aleph Zero to reap the benefits of both a DAG and PoS blockchain.
This allows Aleph Zero to reap the benefits of both a DAG and PoS blockchain.
6/28 The other part of the consensus is the Byzantine Fault Tolerance (BFT) architecture AlephBFT which validates transactions only when ⅔ of committee members agree.
A peculiarity of this system is that it does not confiscate or slash the staked funds of malicious validators.
A peculiarity of this system is that it does not confiscate or slash the staked funds of malicious validators.
7/28 Violators are identified and have their funds freezed. This is followed by an investigation to see if it was an internal error or the node’s fault, a system they assert is better than slashing
#Polkadot uses a form of this in their GRANDPA proposal wiki.polkadot.network/docs/learn-con…
#Polkadot uses a form of this in their GRANDPA proposal wiki.polkadot.network/docs/learn-con…
8/28 This is AZERO's Distributed Ledger Technology or DLT (they use this term instead of blockchain as it encompasses both blockchain and DAG-based protocols).
(Ok halfway through the tech now)
AZERO's main proposition is privacy, so what about their privacy stack?
(Ok halfway through the tech now)
AZERO's main proposition is privacy, so what about their privacy stack?
9/28 Liminal is AZERO's privacy layer combining ZK-SNARKs and Secure Multiparty Computation (sMPC)
ZK-SNARKs allow the verification of data without revealing its actual contents.
sMPC encrypts information off-chain on multiple nodes, requiring unanimous consensus to access.
ZK-SNARKs allow the verification of data without revealing its actual contents.
sMPC encrypts information off-chain on multiple nodes, requiring unanimous consensus to access.
https://twitter.com/Aleph__Zero/status/1407327581012213767
10/28 ZK-SNARKs are good at basic transactions but don't allow multi-user interactions while sMPC allows for multiple users but are slow on its own, thus the combination of both
alephzero.org/blog/liminal-m…
We’ve gone through the technicals, but how do they translate into real life?
alephzero.org/blog/liminal-m…
We’ve gone through the technicals, but how do they translate into real life?
11/28 Aleph Zero employs a hub and spoke model, which allows putting their chain as an intermediary between chains, without each knowing each others’ private keys.
This allows businesses to interact with public networks while maintaining their own private networks.
This allows businesses to interact with public networks while maintaining their own private networks.
12/28 This increases security & reduces the risk of external parties gaining access to sensitive data, which is the case with public blockchains
The rationale here is that individual data points do not need to be public, only its cumulative sum which is used for decision making.
The rationale here is that individual data points do not need to be public, only its cumulative sum which is used for decision making.
13/28 THE TEAM
AZERO's team is pretty solid, with a bulk of the team proficient in mathematics and computer science.
It's Co-Founders are:
@matthewniemerg
@GagolAdam
@AntoniZolciak
Michal Swietek
@damian_straszak
I did a summary of the main team members and their background👇
AZERO's team is pretty solid, with a bulk of the team proficient in mathematics and computer science.
It's Co-Founders are:
@matthewniemerg
@GagolAdam
@AntoniZolciak
Michal Swietek
@damian_straszak
I did a summary of the main team members and their background👇
14/28 Most of them are also part of @cardinal_hq, the company behind Aleph Zero.
“Our core research, development partner is Cardinal Cryptography, a cryptography consulting firm founded by Aleph Zero co-founders and located in Krakow, Poland.”
“Our core research, development partner is Cardinal Cryptography, a cryptography consulting firm founded by Aleph Zero co-founders and located in Krakow, Poland.”
15/28 Cardinal Cryptography worked on other projects like @SovrynBTC, @Minterest, @Casper_Labs and is a partner with the Swiss-Polish Blockchain Association and Swiss Asia Crypto Alliance.
The team wrote a peer reviewed paper on AlephBFT: arxiv.org/abs/1908.05156
The team wrote a peer reviewed paper on AlephBFT: arxiv.org/abs/1908.05156
16/28 TOKENOMICS
$AZERO has a total supply of 300M tokens with a 30M yearly inflation (~10%), which means price has to go up 10% annually for value to stay the same.
2/3 of supply is allocated to the general public (nice callback to BFTs)
Image Source: diamondatlas.io/portfolio-atla…
$AZERO has a total supply of 300M tokens with a 30M yearly inflation (~10%), which means price has to go up 10% annually for value to stay the same.
2/3 of supply is allocated to the general public (nice callback to BFTs)
Image Source: diamondatlas.io/portfolio-atla…
17/28 Of the annual 30M inflation, 90% will be allocated among validators (25,000 $AZERO staked) and nominators (100 $AZERO staked) depending on their stake. The other 10% goes to the ecosystem fund.
The team argues for healthy inflation to maintain the network and stakeholders.
The team argues for healthy inflation to maintain the network and stakeholders.
18/28 ALEPH ZERO ECOSYSTEM
Liminal
Mentioned above, Liminal is Aleph Zero's flagship product and forms the basis of the entire project.
Liminal will offer interchain privacy solutions, and is the first hybrid privacy solution on the market, making use of ZK-SNARKs and sMPC.
Liminal
Mentioned above, Liminal is Aleph Zero's flagship product and forms the basis of the entire project.
Liminal will offer interchain privacy solutions, and is the first hybrid privacy solution on the market, making use of ZK-SNARKs and sMPC.
https://twitter.com/Aleph__Zero/status/1592832968120115201
19/28
@get_common
Common is an upcoming DEX which aims to mitigate the Maximal Extractable Value (MEV) problem
This attack occurs when a block producer sees the transactions submitted on-chain and frontrun them — getting the best deals and leaving everyone else with less value.
@get_common
Common is an upcoming DEX which aims to mitigate the Maximal Extractable Value (MEV) problem
This attack occurs when a block producer sees the transactions submitted on-chain and frontrun them — getting the best deals and leaving everyone else with less value.
20/28 Common also makes use of Decentralized Dark Pools - private rooms where transactions are executed without full transparency
This allows investors to trade without exposure until after the transaction, similar to investment banks or Bloomberg with their Bloomberg Tradebook.
This allows investors to trade without exposure until after the transaction, similar to investment banks or Bloomberg with their Bloomberg Tradebook.
21/28
@interlockweb3
Interlock is a decentralized security platform that delivers Web3 centered solutions to combat cybercrime.
Users are incentivized to share anonymized data on online threats and are then rewarded through Interlock’s native $ILOCK token.
@interlockweb3
Interlock is a decentralized security platform that delivers Web3 centered solutions to combat cybercrime.
Users are incentivized to share anonymized data on online threats and are then rewarded through Interlock’s native $ILOCK token.
22/28
@ArtZero_io
ArtZero is currently the only NFT marketplace built on Aleph Zero, volume here should increase once narratives change to AZERO.
@PunksAzero
Like the OG cryptopunks, but on Aleph Zero.
@AzeroDomains
Similarly, Azero Domains is the ENS version of Aleph Zero.
@ArtZero_io
ArtZero is currently the only NFT marketplace built on Aleph Zero, volume here should increase once narratives change to AZERO.
@PunksAzero
Like the OG cryptopunks, but on Aleph Zero.
@AzeroDomains
Similarly, Azero Domains is the ENS version of Aleph Zero.
23/28 FUTURE
It's important to note that Aleph Zero is currently a work in progress, and it's essential features like Liminal are still in progress.
We still have a long way to go for the project, and it'll be interesting to see how the project does once everything's delivered.
It's important to note that Aleph Zero is currently a work in progress, and it's essential features like Liminal are still in progress.
We still have a long way to go for the project, and it'll be interesting to see how the project does once everything's delivered.
24/28 In it's most recent update, Aleph Zero will allow the community to become validators, run their own nodes and participate in consensus.
By participating in consensus, validator nodes are responsible for verifying, voting on, and maintaining transaction records.
By participating in consensus, validator nodes are responsible for verifying, voting on, and maintaining transaction records.
https://twitter.com/Aleph__Zero/status/1593974901026668544
25/28 WHERE TO BUY
$AZERO is currently available on these exchanges.
@kucoincom
@MEXC_Global
@gate_io
@HuobiGlobal
Of course, if $AZERO gets listed on more top tier exchanges, price and volume would definitely spike as well. Another indicator that we're still extremely early.
$AZERO is currently available on these exchanges.
@kucoincom
@MEXC_Global
@gate_io
@HuobiGlobal
Of course, if $AZERO gets listed on more top tier exchanges, price and volume would definitely spike as well. Another indicator that we're still extremely early.
26/28 CONCLUSION
Aleph Zero's vision for interoperability and privacy might be the key to expanding a whole new market for blockchain data management as privacy-based blockchains would probably be an attractive product for companies
At present, only time will tell 👀
Aleph Zero's vision for interoperability and privacy might be the key to expanding a whole new market for blockchain data management as privacy-based blockchains would probably be an attractive product for companies
At present, only time will tell 👀
https://twitter.com/SatriaPamudji/status/1568138027800854528
27/28 Accounts to follow for the latest on @Aleph__Zero:
Team & Advisors:
@matthewniemerg
@GagolAdam
@AntoniZolciak
@damian_straszak
@kirbyongeo
@DanielKO3816
@Rafael_Aleph0
@Alex_Strz
@3MaxTorres
@cardinal_hq
@AngelBlock_io
Team & Advisors:
@matthewniemerg
@GagolAdam
@AntoniZolciak
@damian_straszak
@kirbyongeo
@DanielKO3816
@Rafael_Aleph0
@Alex_Strz
@3MaxTorres
@cardinal_hq
@AngelBlock_io
28/28 Aleph Zero Community:
@AzeroEcosystem
@AlephZeroNews
@DiamondAtlasC
@AlephSuper
@CaptAlephZero
@euromandriver
@nickfisher_eio
@CountDeFi
@invoster01
@ONOUAGH
@AzeroEcosystem
@AlephZeroNews
@DiamondAtlasC
@AlephSuper
@CaptAlephZero
@euromandriver
@nickfisher_eio
@CountDeFi
@invoster01
@ONOUAGH
This took many hours of research :')
If you've found this thread useful, follow me @tzehingchan and @ChainDebrief for more.
Like/Retweet the first tweet below to support me!
If you've found this thread useful, follow me @tzehingchan and @ChainDebrief for more.
Like/Retweet the first tweet below to support me!
https://twitter.com/tzehingchan/status/1594353250836172800
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