As the blockchain industry evolves so does the technological advancements that improve upon previously set examples. The first blockchain platforms focused on providing a workable cryptocurrency based on the Nakamoto Consensus Algorithm, named after its inventor ‘Satoshi Nakamoto’. This Proof-of-Work (PoW) consensus algorithm has its advantages but is also criticized for being a strain on the environment because of its massive energy consumption.
Blockchain 2.0 was all about adding assets and smart contracts, with Ethereum leading the way, followed by other projects, like QTUM and NEO. The smart contracts layer on the blockchain enabled new blockchain projects to launch their business by initiating an ICO in which they set the terms and conditions in the smart contract.
Near the end of 2017 the cryptocurrency industry reached its pinnacle and prices surged into new all-time-highs. At the same time the scaling issue resurfaced after various blockchains became congested which resulted in high fees and slow transaction confirmations. Tech-savvy researchers and developers were then working on a solution to solve this emerging issue. Some examples of projects that aim to solve the blockchain trilemma (scalability, security and efficiency) are EOS, Cosmos and Ælf. Recently a lot of other projects emerged claiming to set a standard for Blockchain 3.0 of those projects a lot do not have a test-net yet and are only in Research and Development (R&D) phase.
In this article I want to provide more information on how Ælf stands out from other blockchain projects. Ælf is proposing a new paradigm shift in processing transactions on the blockchain. As a Blockchain 3.0 front-runner, Ælf introduces a blockchain solution that is comprised of 3 main features.
Ælf main features
Scalability: parallel processing will enable high-throughput together with the Delegated Proof of Stake (DPoS) consensus algorithm. Ælf proposes this solution as a resolution to solve the scalability issues.
Resource segregation: Ælf abandons the one-chain-fits-all solution for public blockchains by developing a public blockchain solution that will properly run every smart contract on its own blockchain. Ælf is focused on developing enterprise solutions for the cloud computing industry and will therefore be competing with Amazon Web Services (AWS).
Governance structure: To avoid issues later about not being able to reach consensus on scaling and other core topics that can lead to a split into two different chains, Ælf tackles this head-on by setting transparent ground rules that will led to less conflict in project direction. Specialized Delegated Nodes will be assigned to perform special tasks. Critical decisions will be executed through a voting system that requires representative democracy. Delegated Nodes need to have enough backing from Ælf stakeholders to be able to participate in Ælf governance voting.
All 3 features have been designed to solve the current blockchain issues. With other blockchain projects around that aim to do the same thing (solve issues), here are some of the key differences that set aside Ælf from other blockchain projects.
Ælf compared to other blockchain solutions
Ælf compared to Ethereum
Ethereum offers no scalability solution. Also, Ethereum doesn’t offer resource segregation. The benefit of resource segregation is that each smart contract runs on its own blockchain. Ælf provides an extra layer on their blockchain that enables side-chains to run parallel to the main blockchain.
Transactions run on the Ælf blockchain already reached a very promising amount of 14,968 TPS, which is a massive increase in oppose to transactions on the Ethereum blockchain, which are 15 TPS on average.
Ælf compared to EOS
Just like EOS, Ælf is running parallel procession on their blockchain. The main difference between EOS and Ælf. On this front is that EOS only runs parallel processing on their main chain, while Ælf also allows for parallel processing to run on all their side-chains.
Ælf compared to Cosmos
Blockchain project Cosmos is using Tendermint as their consensus algorithm. Tendermint is a Practical Byzantine Fault Tolerance (PBFT) solution for reaching consensus on a network. Tendermint enables a multi-chain system and allows for parallel processing that is limited to the main chain. However, the transference of digital assets between chains is possible, because of its cross-chain communication system.
The main difference between Cosmos and Ælf is the fact that Ælf will be able to execute a contract on a sidechain that can trigger another contract on another sidechain through main chain verification, compared to Cosmos’ Tendermint protocol that can only transfer digital assets through its cross-chain communication system.
Ælf initially launched its project in September last year, after which they raised 55,000 ETH in their private pre-sale. Prominent professional investment firms like #Hashed, Alphabit and FBG Capital saw the potential in the blockchain project and invested in Ælf.
Ælf is one of the few tokens that survived this bear market better than the average cryptocurrency token. Opposed to other recently released tokens Ælf is listed on all the high volume exchanges, like Binance, OKEx, Huobi and Bithumb.
By implementing the 3 main features, scalability, resource segregation and a governance system, Ælf is on its way to become a frontrunner for projects aiming to set a Blockchain 3.0 example. It will soon be celebrating its one-year anniversary and it recently released its test-net results with a very promising result of reaching 14,968 transactions-per-second (TPS).
Not only have they brought some unique and revolutionary new features, but Ælf has provided full transparency in their code being open source, with any tests not only replicable but encouraged to be reviewed by external parties.
Full disclosure: This article is not intended as investment advice. It is just my personal opinion about Ælf. You should always do your own research, before investing in a project and never invest more than you are willing to lose. At the time of writing I personally own Ælf tokens.
Subscribe to my channels Steemit, Medium and Twitter if you like my articles and would like to be informed about Blockchain, cryptocurrency projects and news. You can also read my articles on LinkedIn.
If you have any questions about this article, please comment in the comment section below. Thank you!