Exploring the AZERO token, zero-knowledge privacy and Web3 applications
Aleph Zero is a Layer-1 blockchain that allows developers to deploy scalable, secure and low cost Web3 applications. DeFi products and games alike enjoy Aleph Zero’s privacy-enhancements thanks to zero-knowledge cryptography.
The Aleph Zero ecosystem consists of two pillars. On the one hand there’s the Aleph Zero Foundation, which is responsible for overseeing the development of the Aleph Zero protocol. They are also the issuer of the AZERO token. On the other hand there’s Cardinal Cryptography, the Aleph Zero core development studio responsible for research, cryptography and protocol development.
Aleph Zero explained
Aleph Zero wants to provide a scalable, decentralized and secure blockchain infrastructure, with an additional focus on privacy enhancement. To allow for solid scalability, Aleph Zero as a platform ensures instant finality on transactions, allowing for swift processing of onchain actions. Development of Aleph Zero is done by Cardinal Cryptography.
Consensus mechanism
To secure the network, they implemented their own AlephBFT consensus mechanism, which tolerates 33% malicious actors. Aleph Zero’s asynchronicity ensures that the network approves all transactions without relying on timing. Above all, the network never relies on a single node to process any stage of the process. This allows the network to be resilient against DDOS attacks, while network partitions can easily be recovered to their correct state when they turn out to be malicious.
However, it’s important to note that the smart contracts for Aleph Zero have been built by the team behind Polkadot and WASM. This means that developers can use Substrate to create their dapps, but then utilize the unique features of Aleph Zero on top of all that. As a tech stack this is a strong proposition.
Privacy and zk-SNARKs
Aleph Zero prides itself on its privacy features. In Web2 data is a commodity, and the end-user doesn’t benefit at all from their own data. Aleph Zero introduces zk-SNARKs and MPCs to give users ownership over personal data through smart contracts. Aleph Zero allows for private multi-user interactions, allowing users and teams to share privacy models. This is particularly useful for private voting, auctions and also for DeFi protocols who cherish user privacy.
What is the role of the Aleph Zero Foundation?
The Aleph Zero Foundation (AZF) primarily works on marketing and business development efforts for the Aleph Zero ecosystem. All partnerships, graphics, investments, events, podcasts and content come from the AZF team.
AZERO tokens and governance
With AZERO the Aleph Zero ecosystem has its own utility token, which users utilize through staking, transaction fees and the creation of subnetworks. On a yearly basis 30 million AZERO enters the ecosystem, furthermore there’s 258 million tokens currently in circulation. However, keep in mind that the community has staked over 70% of their AZERO tokens with validator nodes.
It’s also important to note that the community uses AZERO for governance purposes. For example, you need to hold AZERO to be able to vote on or submit proposals.
AZERO token airdrop
There’s no plans for an airdrop for the AZERO token. However, participating in an ecosystem can always potentially be rewarding through other airdrops. Discovering dapps early, or utilizing unique features of those applications. That’s where you potentially can earn rewards. But be aware of scams. To stay safe, it’s best to start your earning and learning journey with our Quests.
Validators and staking AZERO to earn
At the core of the network, there are validators which process the transactions. Users can stake their AZERO tokens with these validators to help to secure the network, while also earning an APY. Aleph Zero offers a couple of nice validator services to explore:
- MyCointainer – Node operator to help you stake
- Kintsu – liquid staking on Aleph Zero
- Azero Live – monitoring and alerting on network data
Validators which have been selected to process transactions, receive rewards in AZERO tokens. They then distribute these AZERO tokens to the delegators, those who support the validator by staking their assets.
Validators decide the split between them and delegators / stakers. Stakers then decide which validator node to support. After that, stakers and validators receive their rewards with regular intervals.
Best wallets for the Aleph Zero blockchain
Aleph Zero is a Layer-1 network with its own programming language, which means you will need a wallet that specifically supports it. These wallets are a sample of the ones that support Aleph Zeros:
- Common – Common is the native wallet and Web3 tool, developed by Cardinal
- MyCointainer – A wallet and node operator for Aleph Zero, and other ecosystems
- SubWallet – A multi-chain wallet for Substrata-based chains
- MetaMask Snap – A snap, or extension, the MetaMask EVM wallet to support Aleph Zero
Block explorers for Aleph Zero
While most users will not bother to dive into block explorers, these tools are crucial for transparency within a blockchain ecosystem. A block explorer shows every aspect of a transaction, including the sender, receiver, the amount, the contract used, the tokens used, which block the transaction took place, the cost, and of course the date and timestamps.
- Azero Live – monitoring and alerting platform for users and developers
- Subscan – Substrata based chain explorer service
Best Aleph Zero dapps in DeFi, NFTs and Games
Below we’ve listed some dapps to help you get started within the Aleph Zero ecosystem. Let’s start by listing some of the DeFi innovations on Aleph Zero.
- Interlock – a DeFi platform to provide solutions to combat cybercrime.
- Crowdgenix – a zk-powered institutional DeFi platform for Real World Assets, RWAs.
- 21X – European DLT-based exchange for tokenized securities
When it comes to NFTs, Aleph Zero has some interesting developments:
- Azero ID – the first private domain name service on Aleph Zero
- ArtZero – an NFT marketplace for digital collectibles and artworks
- AZERO Punks – and of course the mandatory CryptoPunks derivative
Even within gaming, developers use Aleph Zero to create unique products, including for example:
- Upcade – a blockchain-powered gaming platform
- Foxies – an idle staking game built on Aleph Zero
- Explora Online – a 2D MMORPG with a pirate theme
- Darkside Suits – a browser based game built on Aleph Zero
Aleph Zero roadmap
The teams at Cardinal and the Aleph Zero Foundation are working on a couple of initiatives right now. They are working on smart contract tooling, while also introducing an easy update mechanism for basic nodes. In addition, their efforts on zero-knowledge IDs and the ability to shield PSP22 tokens from privy eyes, should not go unmentioned.
Down the line, the team wants to introduce a governance model that strongly relies on the community. They also want to focus a lot more on privacy, for example by introducing a privacy wallet, various privacy browser plugins and the ability to shield transactions with smart contracts.
