About Aleph Zero (AZERO)

Aleph Zero is an enterprise grade, DAG-based consensus protocol. It’s angling to solve the long discussed blockchain “trilemma” of speed, security and decentralization.

Akin to, but not to be confused with, a blockchain, a DAG is a network of individual transactions linked to multiple other transactions. There are no blocks of transactions in DAG networks. If, at its essence, a blockchain is a linked list, as Max Thake explained, a DAG is a tree, "branching out from one transaction to another, to another and so on."

One of the biggest obstacles towards scaling blockchains is effectively ordering the transactions conducted on the network, Aleph Zero said on Twitter. “By taking advantage of DAGs,” the project explained, “we can eliminate the threat of malicious block producers and create truly leaderless protocols.”

A layer-1 solution, Aleph Zero provides a base infrastructure from which developers/enterprises can build decentralized applications and private networks.

Aleph Zero has a native token, AZERO, which can be staked to the network for an annual yield. In time, AZERO token holders will be able to take part in consensus by serving as validators. AZERO owners can currently delegate their stake to an active validator. Its peer-reviewed consensus process leverages a unique DAG to achieve near instant finality at minimal cost to the end-user while reaching throughput speeds of nearly 100,000 transactions per second (in testing). 

According to project documentation, Aleph Zero currently supports a novel DeFi platform, Common, that serves as both a DEX and a hub of decentralized “dark pools.”

Aleph Zero is billed as enterprise-focused platform. The protocol allows large multinational corporations to build private networks and implement private smart contracts connected to Aleph’s decentralized ledger, the platform’s white paper explained.

To bolster these independent projects, Aleph is currently developing Liminal, a multi-chain privacy layer that can be leveraged by the protocol’s “network of networks.”

When was AZERO created and how much was it worth?

Aleph Zero was first unveiled in 2018. Its native token, AZERO, was initially distributed via two seed funding rounds later that year. Per Cryptorank, the project raised over $14.8 million dollars through various token sales/funding rounds. Its mainnet was officially launched in November of 2021.

One month prior to that, some 30 million AZERO tokens were released – at an initial cost of $0.10 - via a public sale.

 According to CoinGecko, AZERO rode a wave of positive momentum following its public debut. This culminated in the token hitting a record high of $3.09 in mid-April of 2022. AZERO has since endured extreme volatility.

The protocol is currently working towards the development of Liminal, a multi-chain security layer expected to be unveiled at some point during the next 18 months. 

How is the price of AZERO determined?

According to d-core.net, AZERO is an inflationary asset with no hard cap. Some 30 million AZERO tokens are set to be released annually in the form of staking rewards.

Why does AZERO have value?

AZERO’s value will depend on its parent platform’s ability to facilitate a scalable, low-cost and enterprise-focused “network of networks;” that would be no small feat, and the objective does appear feasible, particularly when considering some of AZERO’s partners include players such as Zurich-based CLST which is bridging the gap between crypto markets and big institutions seeking short-term borrowing/lending opportunities.

Is AZERO secure?

While Aleph Zero is fast, it lacks a bit in terms of decentralization. On May 2nd, 2022, the network experienced a partial service outage that resulted in temporary delays. 

What are the main benefits of AZERO?

• Aleph Zero facilitates an enterprise-focused ecosystem that’s supports both decentralized applications and private networks.
• Aleph Zero’s peer-reviewed consensus protocol is capable of reaching high throughput speed and minimal cost while achieving instant finality.
• AZERO can be staked to the network for an annual yield.

What do the critics say about AZERO?

They are quick point out that aforementioned network outage, underscoring how the protocol remains very much a work in progress.