What is Aleph-Zero? Key Insights

Miłosz

23 Jan 2024
What is Aleph-Zero? Key Insights

In the era where innovation races against the clock, Aleph-Zero emerges from the horizon, challenging the status 'quo' of technology. This privacy-enhancing layer 1 protocol seeks to fine-tune the blockchain trilemma - security, scalability, and decentralization, that has plagued the predecessors. Let's embark on a journey to understand the essence of, guiding you through its labyrinth with clarity and creativity.

The Dawn of Aleph-Zero

Utilizes Directed Acyclic Graph (DAG) technology along with a classic blockchain structure. DAGs allow to simultaneous sharing the information between the nodes, exponentially growing their number each time.  Constructed on the pillars of cryptographic methods, it stands as a bridge between idealistic visions and pragmatic use cases.

The Fabric of Aleph-Zero Innovation

Let's get through the patterns of design, highlighting its distinctive features.

Scalability and Efficiency: The Dual Engines

Imagine a vast network, akin to the neural pathways of the human brain, where each connection represents a transaction. Aleph-Zero, unfettered by linear processing, allows for simultaneous transaction explosion such as thoughts racing your mind at the time. It is done thanks to DAG implementation, combined with blockchain framework, that ensures an unprecedented level of scalability and efficiency.

Security: Fortified Shield

Threats lurk constantly in the shadows, and thus security measures guard the privacy and integrity treasures. Aleph-Zero crafts this with the finest materials, including zero-knowledge proofs (ZKP) and secure Multi-Party Communication (sMPC). This solution allows the network to verify transactions with a whisper of information, never revealing the secrets it holds. It's like a castle with walls unseen, almost impregnable yet inviting.

Decentralization: The Democratic Heart

Aleph-Zero's network is a vibrant ecosystem where every node, every user, contributes to the harmony of its operation. The consensus mechanism not only celebrates but enforces the principle of equality among its participants.

Aleph-Zero Guiding Towards New Shores

It offers enough foundation for financial giants to tread upon, yet delicate to handle the most private transactions with care. As we gaze further, we begin to discern the outlines of new landscapes. These are the domains of decentralized finance, secure communication, and autonomous organizations - together drawing an unbounded future.

Conclusion

Considering the above, Aleph-Zero is an exploration of the current blockchain ecosystem constraints and a dream of its successful implications in the response. We will continue to peel back the layers, examining its use cases, architecture, and potential to boost adoption. We invite you to join us as we break down the particular segments of the protocol in the next articles.

If you are interested in utilizing Aleph-Zero or other blockchain-based solutions for your project, please reach out to contact@nextrope.com

FAQ

What is Aleph-Zero and what problem does it aim to solve?

  • Aleph-Zero is a privacy-enhancing layer 1 protocol built on Directed Acyclic Graph (DAG) technology and blockchain structure. It aims to address the blockchain trilemma of security, scalability, and decentralization, which has been a challenge for previous blockchain protocols.

What security measures does Aleph-Zero employ?

  • Aleph-Zero utilizes zero-knowledge proofs (ZKP) and secure Multi-Party Communication (sMPC) to safeguard privacy and integrity. These cryptographic methods enable the network to verify transactions without revealing sensitive information, ensuring a high level of security.

How does Aleph-Zero ensure decentralization in its network?

  • Aleph-Zero's consensus mechanism promotes equality among participants, fostering a vibrant ecosystem where every node and user contributes to the network's operation.

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Nextrope Partners with Hacken to Enhance Blockchain Security

Miłosz

21 Nov 2024
Nextrope Partners with Hacken to Enhance Blockchain Security

Nextrope announces a strategic partnership with Hacken, a renowned blockchain security auditor. It marks a significant step in delivering reliable decentralized solutions. After several successful collaborations resulting in flawless smart contract audits, the alliance solidifies the synergy between Nextrope's innovative blockchain development and Hacken's top-tier security auditing services. Together, we aim to set new benchmarks, ensuring that security is an integral part of blockchain technology.

Strengthening Blockchain Security

The partnership aims to fortify the security protocols within blockchain ecosystems. By integrating Hacken's comprehensive security audits with Nextrope's cutting-edge blockchain solutions, we are poised to offer unparalleled security features in our projects.

"Blockchain security should never be an afterthought"

"Our partnership with Hacken underscores our dedication to embedding security at the core of our blockchain solutions. Together, we're building a safer future for the industry."

said Mateusz Mach, CEO of Nextrope

About Nextrope

Nextrope is a forward-thinking blockchain development house specializing in creating innovative solutions for businesses worldwide. With a team of experienced developers and blockchain experts, Nextrope delivers high-quality, scalable, and secure blockchain applications tailored to meet the unique needs of each client.

About Hacken

Hacken is a leading blockchain security auditor known for its rigorous smart contract audits and security assessments. With a mission to make the industry safer, Hacken provides complex security services that help companies identify and mitigate vulnerabilities in their applications.

Looking Ahead

As a joint mission, both Nextrope and Hacken are committed to continuous innovation. We look forward to the exciting opportunities this partnership will bring and are eager to implement a more secure blockchain environment for all.

For more information, please contact:

Nextrope

Hacken

Join us on our journey to deliver top-notch blockchain tech and a safer future for the industry!