Privacy public chain in the ZKP era: Aleo's technical potential and comparison of advantages and disadvantages

Kyle Liu, Investment Manager, Bing Ventures

Key takeaways:

• The success of Aleo depends on the explosion of infrastructure such as hardware and software for spreading zkSNARK proofs, making Zero-Knowledge Proofs a common phenomenon. We believe that Aleo’s features in terms of Programmability and privacy protection make it a promising ZKP project with the potential to meet future needs.
• Aleo is the best choice for those who value privacy and Programmability. It provides strong privacy protection with Zero-Knowledge Proof while providing a robust Smart Contract language that can be used to build complex Decentralization applications. Bitcoin and Ethereum each have their advantages, but Zcash’s limited programmability makes it less attractive to developers and users who need more features.
• We believe that since the Aleo ecosystem is still in its very early stages, we should focus on projects in the following tracks: privacy-preserved Decentralized Finance, privacy-preserved Non-fungible tokens, privacy-preserved authentication, and privacy-preserved data storage. Aleo is an important direction for the next generation of Crypto Assets, with high potential and future development space.

ZKP (Zero-Knowledge Proof) is a method that allows you to prove that you know something without having to directly reveal what you already know. ZKP has great potential to expand the size of the network, verify votes, confirm credit ratings, etc., and Aleo provides users with the option to protect their privacy by making full use of ZKP technology to create a private and secure Internet.

Aleo is a privacy-preserving platform based on Blockchain technology. It uses zkSNARKs technology for high scalability and can support a large number of transactions without having to process all the data. The Aleo platform is Programmable, using Leo, a smart contract programming language that is secure, private, and scalable. At the same time, the Aleo platform provides a wealth of development tools, dropping the threshold for developers to use. This article will explore the potential of Aleo, a privacy public chain in the ZKP era.

Hybrid Consensus Algorithm

AleoBFT is a hybrid Consensus Algorithm that combines PoS of Stake (PoS) and Concise Proof-of-Work (PoSW) to ensure that there are enough experienced validators to solve zkSNARK problems and encourage multiple participants to demonstrate the efficiency and cost-effectiveness of the network. This Consensus Algorithm enables Aleo to achieve instantaneous finality for each block, ensuring complete Decentralization of the network and incentivizing provers to scale the Provability of the Aleo ecosystem over time.

AleoBFT’s design incentivizes validators to maintain the network by generating blocks and incentivizes provers to extend proofs of concept into the Aleo ecosystem. Compared to traditional PoW Mining, Proof Aleo requires a deeper understanding of zkSNARKs, which provides more opportunities for provers to gain a huge advantage. Aleo also accepts more valid solutions per block, thus distributing rewards to more provers rather than following a “winner takes all” framework, which makes validation more expensive.

Aleo is designed to allow applications to outsource proofs to third-party “proof services” that use dedicated hardware and software to process computations, making zkSNARKs faster, cheaper, and more efficient than application developers can do on basic CPUs. Aleo’s success depends on the explosion of infrastructure such as hardware and software for propagating zkSNARK proofs, making Zero-Knowledge Proofs a common phenomenon.

Main technical features

Aleo is a comprehensive Blockchain platform that provides users with strong privacy protection and decentralization features, while also providing scalability and flexibility, providing a perfect environment for developers to build privacy-first Decentralization applications. It uses a zero-knowledge concise non-interactive proof of knowledge (zk-SNARK) protocol to verify the validity of transactions without revealing any sensitive information. It can meet the rapidly increasing demand for ZKP computing, providing the cheapest and most efficient zkSNARK computing power. We believe that Aleo’s features in terms of Programmability and privacy protection make it a promising ZKP project with the potential to meet future needs.

snarkVM and snarkOS

Aleo’s snarkVM and snarkOS are innovative technologies designed to provide privacy, scalability, and security for a decentralization world. snarkVM (Snark Virtual Machine) is a virtual machine that uses Zero-Knowledge Proof to allow users to conduct trusted transactions while maintaining privacy. snarkOS, on the other hand, is an operating system built on top of snarkVM that provides a secure and scalable infrastructure for dApps.

The technical advantages of SnarkVM in Aleo are mainly reflected in the following aspects:

• SnarkVM guarantees the confidentiality of data and transactions by implementing the private execution of Smart Contracts, providing a high level of privacy protection for users of the Aleo network;
• SnarkVM allows computations to be performed offline and results verified on-chain, improving scalability and performance, enabling Aleo to process large volumes of transactions and data without compromising security and privacy;
• SnarkVM allows parties to verify computation results without accessing the underlying data, increasing transparency and trust in Smart Contract execution;
• SnarkVM provides a secure execution environment that drops the risk of Hacker attacks and other security threats, enhances the overall security of the Aleo network, and protects users’ assets and data;
• SnarkVM can also be used to build distributed applications that are interoperable with other platforms and protocols, enabling Aleo to seamlessly integrate with other distributed systems, expanding its reach and reach.

Aleo’s snarkVM and snarkOS are highly scalable with the ability to handle large amounts of data and transactions. This is critical to the success of Decentralization systems, as they must be able to handle an increasing number of users and transactions. In addition, both technologies support a variety of programming languages, allowing developers to develop using programming languages they are familiar with, which can greatly improve the speed and efficiency of development.

In terms of security, Aleo’s snarkVM and snarkOS use cryptography technology to protect user data and transactions, and are designed to be tamper-proof and attack-resistant systems. In addition, they are designed to prevent downtime and censorship, making them ideal for sensitive industries such as finance, healthcare, and government. In the future, Aleo’s snarkVM and snarkOS are expected to play an important role in shaping a decentralization world.

Source: Aleo

Leo Language

Aleo’s Leo language is a statically typed programming language inspired by Rust for writing private applications. It provides developers with the ability to intuitively build applications on the Aleo Blockchain, laying the foundation for a private, decentralization ecosystem. It was the first programming language to introduce testing frameworks, package registration, import, and Zero-Knowledge Proof.

Aleo wanted to develop the Leo language separately because it wanted to provide an intuitive and easy-to-use programming language that would allow developers to create private applications on the Aleo Blockchain. Off-the-shelf programming languages may not be able to effectively abstract low-level cryptographic concepts or easily integrate private applications into existing technology stacks.

The Leo language is a functional, statically typed programming language with intuitive and easy-to-use semantics. The Leo language can create Decentralization applications on the Aleo Blockchain and prove their offline compilation and execution correct. Under the hood, Leo converts the developer’s high-level code into a zero-knowledge circuit.

Source: Aleo

Aleo Studio

Aleo Studio is an interactive development environment for writing zero-knowledge applications in Leo. Aleo Studio is the first IDE for writing zero-knowledge applications. Aleo Studio uses Zero-Knowledge Proof to protect user data and transaction information. Aleo Studio’s privacy protection is its biggest advantage over other tools, which may be more focused on speed or scalability. In addition, Aleo Studio’s user interface is simple and intuitive, with a drag-and-drop design that’s quick and easy, making it ideal for developers of all skill levels.

Aleo Studio also features a real-time preview feature that allows developers to see how a dApp will look and function immediately as they build it. Compared with other development tools, this feature can reduce the time of compilation and deployment, and improve development efficiency. Aleo Studio also integrates debugging tools that make it easy for developers to find and resolve issues in their dApps, which is one of its strengths in the developer market.

In conclusion, Aleo Studio is a powerful and unique Blockchain development tool, and its advantages in privacy protection, ease of use, real-time preview, and debugging tools make it the first choice for developers. Whether you’re an experienced Blockchain developer or a Newbie just starting out, Aleo Studio is worth exploring and using.

Competitor Comparison

Aleo is a zero-knowledge Cryptography-based Blockchain technology designed to provide privacy protection and Programmability. Its core technology, ZEXE (Zero Knowledge ution), generates proofs through offline state transitions, integrates them into on-chain transactions, and updates the system state by creating or using on-chain records. This approach, similar to Zcash and Ethereum, has strong privacy protection capabilities and supports Smart Contracts that enable users to interact with each other or transfer value in a predetermined way.

More comprehensive privacy protection

Aleo employs a Zero-Knowledge Proof approach that enables users to prove the validity of a statement without revealing sensitive information. Ensure that all transactions and smart contracts on the network remain private by using complex mathematical algorithms to create verifiable proofs that do not reveal the underlying data, enabling users to transact on the network anonymously without fear of sensitive data being exposed.

Aleo is a privacy-focused Blockchain platform that uses Zero-Knowledge Proofs (ZKPs) for private transactions and computations. This means that users can trade on the platform without revealing any sensitive information to third parties. Compared to other Blockchain platforms, Aleo has a higher level of privacy protection because ZKP can prove that certain information actually exists without having to reveal the information itself.

In contrast, zk-SNARKs used by other Blockchain platforms such as Ethereum can only offer limited privacy guarantees, while Aleo offers more comprehensive privacy guarantees. This makes Aleo an ideal platform for applications that require a high level of privacy assurance, such as in areas such as finance and healthcare.

Aleo VS other public chains

To achieve a high degree of scalability and decentralization, Aleo employs a unique Consensus Mechanism. This mechanism allows for high transaction throughput while maintaining the security and reliability of the decentralization network. In addition, Aleo supports interoperability with other Blockchains and networks and can be easily integrated with existing systems, allowing developers to leverage the benefits of different Blockchains and networks to create powerful Decentralization Applications.

Aleo’s decentralized private computing technology allows users to run smart contracts under the premise of protecting data privacy, and does not need to rely on public Blockchain, avoiding the risk of transaction information leakage. Aleo’s decentralized private computing technology is a new technology, compared to the zk-SNARK technology used by Zcash, which is already widely used, and it requires a lot of computing resources to generate private transactions, which is not suitable for daily use. In addition, Aleo’s technology can also support the creation of completely private applications, which Zcash does not have.

However, Aleo’s technology also has its drawbacks. Aleo’s decentralized private computing technology requires the use of Zero-Knowledge Proof, which is also complex and requires a certain learning cost. In addition, Aleo is still in the stage of Testnet, which is not yet fully mature, and there are relatively few application scenarios. In contrast, Zcash, as a Crypto Assets that has been around for a while, has a relatively mature ecosystem and application scenarios, but it requires a lot of computing resources to generate private transactions, which affects the liquidity of transactions, and there are also some undesirable historical problems.

Another public blockchain project, Avalanche, focuses on creating functional sub-networks that provide a scalable blockchain ecosystem for their respective applications. While it can create strong, reliable, and secure permissioned or permissionless networks with custom implementations, it lacks the privacy guarantees afforded by Aleo’s zero-knowledge primitives. NEAR is a ShardingPoSBlockchain that aims to provide a fast, inexpensive and user-friendly platform for Decentralization applications. It utilizes a unique mechanism called “fog computing” to distribute computation to nodes that are geographically close to users, reducing latency and improving performance. While it offers Sharding and fog computing to improve scalability and performance, it doesn’t have built-in privacy features compared to Aleo.

Overall, Aleo’s mechanism makes it a more powerful and comprehensive privacy application solution than Avalanche and NEAR. Its private, Open Source default web platform offers a unique solution to address the shortcomings of Blockchain implementations.

Source: Bing Ventures

Advantages of Aleo

Aleo has four advantages over its competitors:

• Aleo is a privacy-focused Blockchain platform that uses Zero-Knowledge Proof technology to enable private transactions and user identity protection. In contrast, Ethereum and Bitcoin do not have built-in privacy protection features, although privacy protection technologies can be supported through smart contracts.
• Aleo uses a more advanced programming language and supports multiple programming languages, including the Ethereum Virtual Machine (EVM), while Bitcoin uses a more limited scripting language. This gives developers more flexibility to develop distributed applications (dApps) on Aleo.
• Aleo has a Decentralization governance model, similar to Bitcoin and Ethereum, but unlike them, Aleo uses Token holders to vote to decide on changes and updates to the network, further ensuring the principle of Decentralization.
• Aleo uses a PoS-based Consensus Algorithm, making it highly scalable and further improving its performance through Zero-Knowledge Proof technology.

Overall, Aleo is the best choice for users who value privacy and Programmability. It provides strong privacy protection with Zero-Knowledge Proof while providing a robust Smart Contract language that can be used to build complex Decentralization applications. Bitcoin and Ethereum each have their advantages, but Zcash’s limited programmability makes it less attractive to developers and users who need more features.

Source: Aleo

App Space

Aleo’s innovation lies in its focus on privacy protection, which is different from other Blockchain platforms. The privacy guarantees offered by Aleo can make it an ideal platform for applications that require a high level of privacy assurance, such as in areas such as finance and healthcare. At the same time, Aleo’s innovative Leo programming language also makes it a powerful platform for developers to create applications with privacy and security priorities.

Compared with similar projects in the privacy public chain track, Aleo’s breakthrough in application scenarios is that it is the first platform for completely private applications, which can provide a better user experience without sacrificing privacy. Aleo’s unique architecture makes it more scalable than traditional Blockchain. Aleo’s applications and user interactions are private by default. On top of this, developers can reimagine web applications that are both completely private and fully personal.

Aleo’s Open Source nature further enhances its accessibility and fosters a large and vibrant community of developers and users who can contribute to the platform’s growth and innovation. The platform also offers a unique reward system for its users, who can earn rewards by holding Aleo and providing liquidity to participate in the network. This motivates users to participate and helps ensure the security and stability of the network.

Bing Ventures believes that since Aleo’s ecosystem is still in its very early stages, it should focus on projects in the following tracks: Decentralized Finance for privacy protection, Non-fungible Token for privacy protection, identity verification for privacy protection, and data storage for privacy protection. Aleo is an important direction for the next generation of Crypto Assets, with high potential and future development space. Its multi-tier structure makes it highly scalable and capable of processing a large number of transactions at the same time, making it suitable for high-volume application scenarios. At the same time, Aleo employs a unique Consensus Algorithm that is able to reach consensus in seconds instead of minutes or hours, which gives it an advantage in terms of transaction speed and efficiency.