What is Aleo (ALEO)? Aleo Cryptocurrency Overview

Zero-knowledge is one of the solutions widely anticipated to be the eventual solution to the trilenma blockchain challenge. Aleo is a noteworthy blockchain-based project that employs this technology.

What is Aleo?

Aleo is a blockchain platform project used to build dapps that help users have a private web experience. By designing Aleo into a private-by-default, open-source blockchain, the project believes that Aleo has important characteristics to make blockchain more universal.

In the next few years, network services will become very popular, and it will also be important for users to control their personal information. Given that users have to exchange personal data for free services has become obsolete, the project aims to change this by using privacy-protecting technologies. Among them, ZK encryption technology stands out (Zero Knowledge).

Highlights of Aleo

Aleo is a project that applies ZK technology, which can provide users with many options and minimize the risk of data theft. Outstanding advantages of ZK encryption technology:

• Increase web security: Instead of leaking passwords, users can encrypt and log in on the device without sending passwords. This also reduces access control costs and reduces the liability that web services incur today.
• ZK technology is suitable for web services: Nowadays when using web services, users often have access to personal data and web service providers can sell this information to 3rd parties. This is a rather serious unresolved issue.
• ZK technology makes web services fair: Users need to be able to interact with the network service without revealing information, as well as freedom in the use of data.

Aleo is a separate blockchain, thus also using its own programming language called Leo. This is a programming language inspired by Solidity language of Ethereum, Leo is designed to write private applications that run smoothly on the web and ensure user data is not stolen.

In addition, Leo has much in common with Javascript and Typescript, developers who are fluent in these languages will have easy access to Leo. The Aleo team also offers an Aleo Package Manager (PM) similar to the Cosmos SDK to make it easier for project developers to build dapps on Aleo.

Aleo uses the Proof of Succinct Work (PoSW) consensus mechanism: which is a variant of Bitcoin’s SHA-based difficulty adjustment algorithm, the main difference is that the basic calculation is not an arbitrary hash but a proof of knowledge. As such, Aleo also has a similar mining mechanism with BTC.

Fees on the Aleo network can also be calculated in advance, users will know how many Aleo points (Aleo credits) are needed to run a regular dapp. Unlike Ethereum, Aleo does not use the concept of gas.

Benefits of holding ALEO tokens

ALEO is the native token of the Aleo blockchain, which has the following uses:

• Native token, which represents the value and development in the ecosystem.
• Use as transaction fees on the network.
• Use for activities in dapps on Aleo.
• Reward miners, used as a system to encourage participants to contribute to the security of the network.
• Earning incentives is the same as accruing AWS credits for using cloud services.

Project team, investors, partners

Project Team

Aleo was formed in 2019 by original members Howard Wu, Michael Beller, Collin Chin, and Raymond Chu. These are all engineers, cryptographic researchers, partners of many large enterprises in the world such as Google, Amazon … and some universities such as NYU, Cornell University, University of California …

The Aleo project team mainly operates directly with headquarters in Reno, Nevada, USA. Information about team members is posted on Linkedin.

Investors

The idea of applying Aleo’s ZK technology has received a lot of attention from investors, the project has successfully raised capital in 2 rounds with a total amount of 228 million USD.

Series A

• Published date: 20/8/2021
• Funding amount: 28 million USD
• Investors: a16z, Placeholder VC, Galaxy Digital, Variant Fund, Polychain Capital, Slow Ventures, Dekrypt Capital, Coinbase Ventures…
• Leading investor: a16z

Series B

• Published date: 7/2/2022
• Fundraising amount: 200 million USD
• Investors: Tiger Global, Sea Capital, Samsung Next, Slow Ventures and Andreessen Horowitz (a16z) …
• Leading investors: Kora Management LP and SoftBank Vision Fund 2

Partner

Aleo will tend to collaborate with projects that can use its technology, the first to announce a partnership with Aleo is Forte, a blockchain game development company.

Roadmap & Updates

Since its launch, Aleo has had quite a few community development programs:

• Aleo Ambassador Program: Awarding Aleo ambassadors to help spread information about the project, increase awareness…
• Aleo Feature Bounties: The program encourages community members to propose ideas about the features of the Leo programming language.
• Community Grants Program: Reward and encourage projects using ZK technology and build dapps on Aleo. In total, about $1 million will be earmarked for this program. So far, only 1 project, Pine Street Labs, has received money from this fund.
• Incentivized Testnet: The program encourages users to participate as network operators.
• ZPrize Competition: Competition for development and research on ZK technology. The prize pool is $2 million and the opportunity to collaborate with industry leaders such as Ethereum Foundation, ZCash Foundation, Mina, Aztec.

In the near future, Aleo will deploy Testnet 3, if nothing changes, Aleo can move to the mainnet in Q1/2023.

Details about ALEO token

• Key Metrics ALEO Token
• Token Name: Aleo Token
• Ticker: ALEO (tentative)
• Blockchain: Aleo Blockhain
• Token Contract: No
• Token Type: Utility Token
• Total Supply: Updating…
• Circulating Supply: 0

ALEO Token Allocation

ALEO is expected to be allocated in the following proportions:

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%

ALEO Token Release Schedule

ALEO’s initial community allocation as well as inflation rates are quite high in favor of early users joining the network. ALEO is allocated according to the following inflation curve:

ALEO Token Sale

The project does not open token sales.

How to earn and own ALEO Token

Users can own ALEO tokens by participating in operation, network security, mining, participating in programs organized by the Aleo team.

Aleo’s information channels

• Twitter: https://twitter.com/AleoHQ
• Discord: https://aleo.org/discord
• GitHub: https://github.com/AleoHQ
• Community wiki: https://aleo.org/community/wiki

Conclusion

Another project employing ZK technology attracted the interest of both the community and investors, raising $228 million successfully. This also demonstrates that ZK technology has great potential to become the future’s fundamental technology.

Disclaimer: The information in this article is not investment advice from CryptoChill. Hopefully, the above article helped you understand about ALEO for users.