What is Aelf?
Aelf primary objective is to resolve “ Scalability, Resource segregation and an Adaptable governance model”, the three main bottlenecks current blockchains are facing.
Unlike traditional blockchain which depends upon the main chain for all the processing, Aelf consists of the main chain and innovative, single-application side chains. With the introduction of side chains, the network doesn’t get congested, which will help the network to scale efficiently. This is done by organizing each sidechain to have only one individual application running on it, while the main chain serves primarily as an overseer and security umbrella.
Another advantage of side chains is the Cross chain Interaction. That means Aelf blockchain will be able to interact with external blockchain networks like Ethereum, Bitcoin, etc which helps the sharing of information.
To tackle the governance issues, Aelf has opted for Delegated Proof-of-Stake process(DPoS). DPoS is in a way similar to PoS, but has different and more “democratic” features that ensures a more efficient and fair approach. In DPoS, token holders are able to cast votes to elect nodes or we can say ‘miners’. Votes are weighted by the voter’s stake, and the Block that receives the most votes are those who are delegated to join the active & backup node groups.
Aelf Token and Its Uses
The Aelf token can’t be mined with PoW like Bitcoin or Ethereum. The total supply of tokens is locked at 1,000,000,000.
- 25% of the tokens (250,000,000) were sold in a private sale in 2017
- 25% of the tokens (250,000,000) will be locked with the Aelf Foundation with three years vesting period
- 16% of the tokens (160,000,000) will be with Aelf Team locked for two years
- 12% of tokens (120,000,000) will be used for Mining over 100 years
- 12% of tokens (120,000,000) will be used for supporting Marketing activities and the ongoing Air Drops for three years
- The remaining 10%(100,000,000) will be used to support Advisors and Partnerships expenses spread over a two year vesting period
Staking of Aelf token to be a delegate
Aelf uses DPoS to reach consensus. Lets first understand more about DPoS(Delegated Proof-of-Stake).
DPoS is in a way similar to PoS, but is different and has more “democratic” features which make it more fair and efficient. In DPoS, token holders will cast votes to elect nodes or we can say the miners. Nodes that receive the most votes are those who produce/mine blocks.
In the case of Aelf, there will be 17 active nodes in the first year and this will increase by two each year. Apart from the active nodes, there will also be some backup nodes (100 as per the initial communication) which may or may not change in the future. The sole purpose of the backup nodes is to create a strong buffer, replacing one of the active nodes should they perform poorly or maliciously towards the network
Every week token holders can vote of their favorite nodes or even vote for a new one. In return for the votes, Nodes will share a portion of blockchain fees spread among the voters.
Staking of Aelf tokens to be a SuperNode
As discussed earlier, the job of the node is to validate the block, run the network and ensure the health of network security on behalf of the delegates. In return for that Nodes receives the block rewards as payment. A part of it, which in turn is passed on to the voters as a reward to keep voting for the nodes.
These nodes will form the jugular vein of future Aelf blockchain. To be a node, you need to stake a fixed amount of Aelf token. The number of tokens required to be staked will be communicated by the official team before mainnet launch.
Aelf tokens as a mode of payment to use the system
Lets first understand a little about DApps. DApps ( decentralized application) as the name suggests, a decentralized application that runs on the blockchain delivering a wide range of functions.
One of the best DApp platform currently in existence is the Ethereum platform. But due to the various constraints it has, It is not suitable for enterprise level function. Once Aelf launches, it is expected to overcome many of the pitfalls the Ethereum blockchain is currently facing and pave the way for the enterprise level revolution.
When the dApps utilise the platform, it needs to pay the platform a fixed amount of fees (here in this a case the native token). As the platform matures more and more dApps start using the platform which pushes the demand of the token making it more valuable.
Aelf Mainnet is expected to be launched soon. It ushers a new era of blockchain and will pave the way for enterprise level applications which will accelerate global adaptation of blockchain.
Aelf has given specific thought to creating a token which has a definite use and ongoing demand. This will help to ensure the longevity of the ecosystem and to build a stable foundation for the value of the token.
Disclaimer: This article is not intended as investment advice. You should always do your own research and invest your capital wisely. I don’t own the token, neither will I be rewarded in any way for writing this article.