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 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, 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.
Private smart contracts make it possible for users to anonymously interact with them, allowing also some of the inputs and outputs to remain fully concealed. The degree to which a given contract utilizes privacy is chosen by its developers.
Aleph Zero provides 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.
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.
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.
Aleph Zero distributes staking rewards (originating from inflation) to validators and nominators. This incentivizes and benefits holders when they maintain their positions and stake their tokens, but it also ensures that the ecosystem is secure. Tokens are also extracted from circulation which leaves the potential for a deflationary token supply on the open market.
Use AZERO on Common (Decentralized Exchange) to pay for gas fees, or rely on the function that abstracts it away to improve the user experience.
The main network of Aleph Zero went live in 2021, which attracted various projects. However, in March 2023, the ability to publish smart contracts was launched, enabling protocols to build their products. Since then, the main network has seen an influx of projects entering their ecosystem.
As Aleph Zero is a universal purpose network, the projects consist of DeFi projects such as Yield aggregators, Decentralized exchanges and lending and borrowing platforms. Aside from DeFi, the network also consists of Metaverse, DAOs, launchpads and NFT projects. As more projects continue to enter the Aleph Zero ecosystem, a network effect is created, which in turn attracts more users and capital.
In June, Aleph Zero partnered with Ledger, a cold storage solution, to make the $AZERO token accessible in Ledger's secure environment for storage and transfers. Additionally, Aleph Zero revealed they are developing a solution for users to directly stake their tokens, and will be incorporating nomination pool features. These enabled features will also aid Aleph Zero in reaching a larger target audience while enabling enhanced security for its community.
Since February 2023, $azero has been on a consistent downtrend notably since it failed to reach above the 2 dollar price.
In recent developments, there has been a notable shift. The charts suggest that investors have perceived the price as undervalued. The token has effectively surpassed its prior downtrend line, indicating a somewhat bullish sentiment. Concurrently, the Relative Strength Index (RSI) is trending upwards, suggesting a rise in buying interest. Although the current situation holds promise, it's yet to be determined if $AZERO can sustain its position above the established range and fortify itself against bearish pressures.
Would you like to read the full report? Our report provides an in-depth analysis of team, tokenomics, technology and more. Do you want to gain access to all our research reports? Create an account in our portal.