In the context of the increasingly popular Zero Knowledge Proof (ZKP) technology, Aleo becomes one of the first Layer 1 blockchain projects to provide completely private applications using ZKP technology and is led by the famous venture capital devil a16z. The project is committed to providing users with unlimited computing power with absolute privacy. Let’s find out more about this project in this Aleo review.

What is Aleo?

Aleo is a decentralized blockchain platform that helps secure data. Platform with a completely new programming model to provide Web 3.0 application developers and users with a personalized experience that is almost completely secure and does not have to worry about revealing private data.

Aleo applies a decentralized system and unique technique, “Zero Knowledge Proof,” to protect user data on the web. Aleo will structure its platform based on the blockchain system in a private-by-default direction to address the shortcomings of blockchain adoption and help users have a completely personalized browsing experience without losing control of their personal data.

Born in 2016 as a study on programmable ZK, Aleo was officially founded in 2019 by Howard Wu, Michael Beller, Collin Chin, and Raymond Chu. Thanks to its groundbreaking approach to security technology, Aleo has received widespread support from academic researchers to the web, blockchain, and community developers…

In April 2021, US$28 million Series A funding was completed, led by a16z and Galaxy Digital, Variant, and more participated in the investment; In February 2022, a $200 million Series B funding led by SoftBank and Kora Management was completed.

What problem does Aleo solve?

Most online business models today operate in the form of providing free services to users. Instead, they will take each customer’s private data to “own” it. This model (Web 1.0 and 2.0) needs to be updated and will cause users to conflict with providers. Because users are losing their privacy, the provider will face the risk of data management, storing, processing, and reporting data and may face many limitations and problems.

However, using Aleo technology will be different. The above concerns will be completely changed because the project aims to provide a space for private browsing data to come true.

What makes it so special?

Blockchain: This is a separate blockchain, so it also uses its programming language, Leo, inspired by Ethereum’s Solidity. Thereby ensuring the design of private applications that operate smoothly on the website, helping to secure user data.

Languages: Blockchain has a lot in common with Javascript and Typescript, and developers who are fluent in these languages will have easy access to Leo. The project development team also integrated the Aleo Package Manager (PM) software, which functions similarly to the Cosmos SDK, for project developers to build dapps on the web quickly.

Mechanism: The project uses the Proof of Succinct Work consensus mechanism (PoSW- a variant of Bitcoin’s SHA-based difficulty-adjusting algorithm. Its only difference lies in the computation process basically, not an arbitrary hash function, but instead a proof of knowledge. Infer, the project also has a mining mechanism that is no different from BTC.

Fees: Online fees are also precalculating. Users will know how many points (Aleo credits) are needed to run a regular dapp. In particular, the project does not use gas fees like most other projects.

Applications

Zero Knowledge Execution – Zexe

This is a technology built on the foundation of Zero-Knowledge Proof (ZKP) and is used by Aleo to help developers create secure privacy-oriented templates for systems blockchain. The primitives of ZKP (ZK Primitives) will be the foundation for creating decentralized networks, DeFi, DAOs, smart contracts (smart contracts) with security and privacy for users.

An example of privacy protection is user passwords. Zexe will help users hash (hash) passwords right on the device to support authentication without having to store that password on the website. This way, users can store and control their data right on that device to avoid exposing information to another intermediary.

The Leo programming language

Leo – a programming language created by Aleo to make writing private apps intuitive and easy. Leo looks like a traditional programming language, but it’s very complex because Leo abstracts away low-level coding concepts and makes them easy to incorporate into your private application.

Leo introduces a high-level syntax suite that makes it possible to visually write and interpret logic in zero knowledge. The Leo language is influenced by traditional programming languages such as JavaScript, Scala, and Rust, with an emphasis on ease of use and readability. Leo will also convert high-level developer code into zero knowledge circuits.

Aleo Studio

This is an interactive development environment for writing zero knowledge applications in Leo. For developers, Aleo Studio is designed to simplify the development cycle and make it easy to publish your Leo project as a package for the ecosystem.

Aleo Package Manager

This app makes it possible for developers to group and share their products. Aleo Package Manager is the first set of software for zero knowledge circuits. Aleo Package Manager will be integrated into Aleo Studio to make it easy to import and publish new packages.

snarkOS

Aleo will run on a decentralized operating system for private applications called snarkOS. It will be the backbone for state transitions, and make it possible for applications to authenticate and store state on Aleo’s blockchain in a public and verifiable way. snarkOS will also perform data availability across programs and transactions. Moreover, its consensus mechanism will help verifiers to compute ZKP proofs on on-chain checkpoint states.

zkCloud

zkCloud is an off-chain computing environment where developers can execute Dapps or smart contracts privately, securely, at low cost and with unlimited time on Aleo. zkCloud is the solution to Web2’s privacy problem while balancing the privacy and programmability of the Aleo blockchain.

Currently, each blockchain cannot balance the two factors of privacy and programmability at the same time:

• Zcash only focuses on security but it is very difficult to program.
• Bitcoin or Ethereum are easy to program but the security and privacy are not high.

The project can meet both of those criteria and zkCloud is what makes the difference.

Tokenomics

Basic information

• Token Name: Aleo
• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract: Updating…
• Token Type: Utility
• Total Supply: Updating…
• Circulating Supply: Updating…
• Token use case

Use cases

• Native token, representing value and growth in the ecosystem.
• Use as a transaction fee on the network.
• Use for activities in Dapps on Aleo.
• Reward miners, use as a system to encourage participants to contribute to the security of the network.
• Accumulating offers is the same as accumulating AWS credits for using cloud services

Token Allocation

At the beginning:

• Early Backers: 57%
• Team: 20%
• Public: 15%
• Grants: 8%

After 5 years of operation:

• Early Backers: 33%
• Team: 11%
• Public: 55%
• Grants: 1%

Fee

A transaction fee is a fee that is required in order to process a transaction on this network. Currently, there are two types of transaction fees that correspond to each transaction type: deploy and execute.

Aleo Credits Denomination Table​

Types of Transaction Fees

Deploy Transaction Fee

A fee incurred when deploying an application on the blockchain.

Notes​: To prevent bad actors from spamming the network with superfluous transactions, a variable Deploy Transaction Multiplier will be added to all deploy transactions.

Execute Transaction Fee​

A fee incurred when executing an application on the blockchain.

Notes: The minimum execute transaction fee may increase to prevent spamming; it is currently stable between 3 and 5 millicredits for a basic credits.aleo transfer.

Conclusion – Aleo Review

Above is the basic information about the Aleo project I want to provide you. With the application of zk technology – it promises to have new generations of dApps in the future. It can be seen that the groundbreaking approach of the project is attracting many investors and users in solving security and privacy obstacles.

Information leakage and data privacy issues frequently appear on the Internet today. The project’s vision is to solve this problem and build a personal and private network user experience. The difference and uniqueness between Aleo and other public chains lie in protecting privacy and scalability on the chain. To deal with the above phenomena, the network is based on zero-knowledge cryptography, which solves the problem of the current public chain regarding privacy protection and supports big data processing (Ability of extension).

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.