Aleph Zero (AZERO)
The development of cryptocurrencies and smart contracts has created a new digital economy that could operate in a decentralized environment. Cryptocurrencies and smart contracts make use of blockchain technology in order to function, which does have some shortcomings. The blockchain functions as a distributed ledger and all transactions, balances, and interactions of the users are public and can be tracked down.
This transparency is for many involved users no problem as their real identity isn’t disclosed. However, some parties, such as (government) organizations, rather don’t want their transactions, interactions, or private documentation recorded on the blockchain. This could be a company that wishes to cut data storage costs by the use of blockchain technology but doesn’t want to have all its data public due to its private nature. One of the technologies developed to tackle this problem is private smart contracts.
This new emerging technology enables the possibility for developers to hide the code of the smart contract, hide the nature of why it was programmed, and conceal the interactions of its users. This creates the possibility for organizations to use this new technology as some of the actions can maintain private.
Aleph Zero aims to provide a network that is enterprise-ready and uses the latest privacy-enhancing technologies. The developed network is one of the most scalable networks in the cryptocurrency space due to the new distributed ledger technology implemented in the protocol. This creates a network that is easily accessible, scalable, decentralized, secure, and provides privacy for those who deem it necessary.
Aleph Zero technology
The technology implemented in Aleph Zero is best illustrated in the inner workings of the privacy layer “Liminal”. The privacy layer creates a more confidential environment for its users, this is achieved through the latest privacy-enhancing techniques called ZK-SNARKS and secure Multi-Party Computation (sMPC). ZK-SNARKs allow users of the network to prove that they are in possession of certain data without having to reveal the content of this data, for example, a user can prove he is able to buy an object without revealing his balance. sMPC are multiple computers storing incoming data, carrying out multi-party computations and verifying incoming transactions all without revealing the individual input of each user. Thus, the system guarantees that the information of each participant is kept private.
These two technologies form the basis of the privacy layer Liminal, ZK-SNARKS verify if the integrity of the transaction is correct, without revealing any data and sMPC finalizes the transactions. The combination of these techniques provides a revolutionary privacy layer.
Read more on Aleph Zero’s Technology in our extensive research report.
Aleph Zero use-case
As Aleph Zero is developing their own blockchain technology and network, the possibilities of the network are almost limitless. Developers can utilize the multiple layers of Aleph Zero and create their own applications, so, it’s difficult to determine what the protocol is going to offer us in the future. However, some organizations and protocols have already announced that they are going to use the network. These entities are located in various sectors such as the cryptocurrency market, legal advisory, and software development. All these organizations seek to improve their operations through the Aleph Zero network and their privacy. One of these protocols is called “Common”, which is one of the first products built on the Aleph Zero network. Common will be a privacy-enhancing, multichain, and low-cost decentralized exchange for digital assets.
Another use of the Aleph Zero network is through the implementation of Darkpools. Darkpools utilize the underlying technology of the network and create a new form of cryptocurrency trading. When traders want to trade their cryptocurrency for another cryptocurrency, the pool will search for a similar order to match up the incoming orders. So, traders will trade against each other and not against a liquidity pool. The pool will maintain the privacy of the traders as they don’t know who the counterparty is. This creates a more private experience when trading digital assets.
Aleph Zero ecosystem
Since the founding of Aleph Zero, the protocol has steadily attracted a lot of positive attention. More cryptocurrency users and organizations are pulled towards the fast, scaleable, and privacy-enhancing blockchain. The Aleph Zero ecosystem consists of various organizations that are located in multiple branches, one of these institutions enables the borrowing and lending of cryptocurrency, called “CLST”. Which is trying to establish a network of lenders and borrowers to become the institutional gateway for uncollateralized lending.
Other organizations are located in sectors such as identity management like the company Gatenox, which is aiming to become the go-to decentralized identity wallet for exchanges, fintech companies, and banks. Users, on the other hand, will be able to profit from sharing their data. As Aleph Zero is becoming more popular, more organizations and users will utilize the features of the protocol.
Aleph Zero News
Aleph Zero has recently announced that staking has become available for token holders. The possibility to stake the AZERO token was long-awaited by the community and many were delighted by the progress made. Staking is the first of the many milestones which the team has to reach in the coming months, but the possibility to stake the token has created a positive sentiment among investors and the community. Through staking, the network will become increasingly more secure, and the rewards for that services are estimated to be between 10-20% yearly.
Aleph Zero has recently announced a partnership with “Fractal”, which is a company that aided Aleph with their Know-Your-Customer and Onboarding process during their public and private sales. Fractal is an open-source zero-margin protocol that defines a basic standard to exchange user information in a fair and open way ensuring a high-quality version of the free internet. Fractal aims to empower and incentivize users & businesses to exchange data in a privacy-preserving way.
Aleph Zero Technical analysis
The highly anticipated release of the Aleph Zero token to the open market has generated a price chart that is very distinct for 2022. After being sold to the community at a price of $0.10, the token stabilized around $0.70, having touched $0.90 during the first moments after the token generation event (TGE). Notably, the $AZERO token was only available to trade on the MEXC exchange and was added on Gate.io two months later.
The price action suggests that adding the token to this new exchange exposed the project to new buyers as it was around March 20th when momentum broke, and price abruptly started trending to the upside. The previous resistance set at $1.50 was quickly broken, and price pushed strongly into the $2 range. On the 14th of April, in unison with the rest of the market, the price started downtrending.
This has led to the price quickly losing the support it would’ve had in a strong uptrend, at the 200 moving average (MA) on the presented 4h price chart. The death cross occurred on the 28th which coincides with the last moments when Bitcoin traded above $40,000. Given the overall bearish sentiment in the market, the price of the Aleph Zero token has followed this trend, having found support around the $1.00 level, a critical key psychological price.
Given the high correlation with the rest of the crypto market, it is unlikely that the $AZERO token will break this trend, even if positive developments are seen with the project itself. At the same time, price doesn’t always have to accurately reflect the developments of an ecosystem and in there lies the true investment opportunity. New applications continue to be built and more users are visibly joining the ecosystem. The importance of the $1.00 price level remains to be seen.