What is Aelf (ELF) Blockchain? – Everything you need to know


Blockchain innovation and adoption are advancing exponentially. The journey started with Bitcoin which paved its way in as a peer to peer digital currency. The Bitcoin was followed by Etherium, which made it possible to create specific decentralized apps (DApps) with the help of smart contracts. These eventually fall short the big operating systems such as Linux, MacOS and the windows which we are using today.

The current operating systems are not capable of running the DApps efficiently, and the current blockchains also have their own drawbacks. They lack a proper consensus protocol, they are not scalable, and they can also interfere with the execution of smart contracts. Luckily, the interaction of Aelfs brought an effective solution to all these.

Our guide will take you through the basics of Aelf

Quick Summary:

  • Aelf provides a unique customizable operating system which is designed explicitly for the blockchain
  • The main aim of Aelf is to provide an alternative solution to the current blockchain technology challenges
  • The Aelf system is made up of a single main chain and other multiple side chains which run the smart contracts
  • Instead of using the standard POS and POW consensus mechanisms, it maintains its network by using the delegated Proof of stake consensus which is similar to EOS and Ark use

What is Aelf?

This is a unique customizable operating system which is designed explicitly for the blockchain. The self-evolving computing network brings these innovations: voting through the token holders, resource allocation for smart contracts and scalable nodes on computers.

The ELF Token

ELF token is used as a method of payment for resource allocations. The token is used for payment of cross chain data transfer fees, transaction fees and other resource fees for the Aelf system. It also helps in maintaining stability in the Aelf ecosystem by incentivizing contributors and through voting. The token is uniquely designed such that all Aelf OS side chains recognize it as a mode of payment. Its existence has been made possible by a team of experts and who create a clear road for their visions and ideas, and also ensure that the ELF token maintains its price in the CoinMaketCap

Rich blockchain feature

Aelf is still a young project, and it’s therefore early to judge whether it will survive in the industry or not. However, the token system aims to include highly desirable features which might be useful for the next generation of the blockchain. The main features which Aelf wishes to add are the concept of the multilayer side chains and main chains, cross chain interaction, and scalable performance. It also wishes to have a parallel procession ecosystem and a staked consensus.

How does Aelf Work?

The main aim of Aelf is to provide an alternative solution to the current blockchain technology challenges. The systems, therefore, work by focusing on two main primary innovations; a unique governance system and the side chains. The projects segregate smart contracts and resources through side chains so that it can be built a better governance system. Let’s get into the details of these:

Side chains

The Aelf system is made up of a single main chain and other multiple side chains which run the smart contracts. The main chain does not regulate any smart agreements, but it acts as the general supervisor to the side chains which interact with the other blockchain.

This means that the smart contracts are created on unique platforms with each one of them having a different side chain. The entire Aelf chain (managed by the Aelfs) acts as the backbone for the whole of the system. Communications between the side chains are therefore done through the main chain only.

Side chains connect with the primary chain through an index system. The index system groups the chains into two major groups:

  • External chains– these are of high importance and can, therefore, be used enlarge the Aelf boundary such as the Etherium and Bitcoin boundary.

Other blockchains such as the Bitcoin can also have their side chain branching from the Aelf system. The structure resembles the Etherium’s sharding concept, and is expected to enable a convenient scale of the network; the decision of the functional parts in the systems ensures that a problem detected in one component does not affect the other parts or the entire network.

  • Internal chains- these can operate under Aelf OS only

For instance:

The main chain can have a Bitcoin branching as one of its chain, and different side chains such as the assets types and asset exchanges. Additionally, these side chains can also have their own sub-branches which form a sub chain. The sub chains could also be broken further into other smaller chains, and the chain continues to develop an ecosystem.

Token ecosystem

The side chains are required to pay the main chain a transaction fee which is used for indexing purposes. If the side chains cooperate well and contribute more to the main chain, the less the transaction fees they will need to pay. Bitcoin is widespread and known than the others, and it’s therefore not charged any fee since its contribution is significant as compared to what the other contributes.

Trading

The first ELF token sale was made in early December 2017, and the price has been turbulent since then. The main goal of the first sale was to contribute 55,000 ETH, a target which was achieved through a private sale. Following the initial token sale, the price of ELFs rocketed up from ~0.000068BTC ($0.87) to ~0.000165BTC ($2.61). This increase was most likely contributed by the investors who found out about the coin. The project drew funds from reputable investment companies such as BlockTower, Galaxy, FBG Capital, Blockchain Ventures, Draper Dragon and much more.

Since the beginning of this year, the ELF price has been rising and falling dramatically, although it has remained within the points mentioned above. The price has however shown consistent drops since June 2018.

Consensus

The standard proof of stake and proof of work consensus mechanism is not used in Aelfs. This is because the formation of the Aelf block requires the main chain to keep a record of information from the side chains. Aelf has a complex structure, and that’s why it does not use the two mechanisms.

Instead, it maintains its network by using the delegated Proof of stake consensus which is similar to EOS and Ark use. All the Aelf token holders are given an equal voting opportunity in determining the beset bodes which should be used in mining. Once the mining nodes are chosen, the mining rewards are given to the stakeholders and the other nodes as well.

The primary purpose of the mining nodes is to enhance the conformation and relay of transactions, transfer of data and packaging blocks.

This equation is used to determine the specific number of network miners:

Miners= 2N+1

N is the integer which begins at 8, and it increases by 1 every year.

Aelf encourages the other side chains to make use of their consensus protocol so that they can customize it for their specific applications. The side chains formed through the Aelf OS have however been advised to merge their mining with the main Aelf chain.

Where to buy ELF Token

ELF token is currently trading in more than three exchanges and is also paired with Won on Bithumb. Some of the exchanges where you can get it include as Binance Exchange, Huobi and OKEx. Binance allows the transfer of ETH and BTC only, while OKEx and Huobi accept USDT besides ETH and BTC.

The Aelf team is planning to launch Aelf mainnet in early 2019, and so the ERC-20 standard will be expected to migrate during that time. Also, Aelf recently launched a reward system known as the Candy. The system allows users to earn points which can be converted to ELF by carrying out simple tasks every day. Examples of these include re-tweeting Aelf tweets, inviting new people to telegram or engaging in other ELF promotional activities. To participate, you must first sign up for the Candy program.

Storage

ELF tokens are ERC-20 tokens and can, therefore, be stored in the ERC-20 compatible tokens wallets. The wallets include MyEtherWallet, MetaMask and Nano S.

Challenges and competition

According to its vision and roadmap, Aelf is making steady progress in the industry. The Aelf blog ensures that it’s communicated is well connected through the regular developmental updates made by the team. Being a new token, ELF Token has not encountered many challenges expect the market penetration challenge. The market is already filled with other similar tokens, and so the becoming best and well the widely recognized blockchain platform has only been the notable change.

The obvious competitor in the entire blockchain platform is Etherium. Lisk is also a significant competitor in the specific application of side chains in development.

Conclusion

Aelfs vision of becoming the blockchain Linux is quite ambitious. Although it is among the newest competitors in the DApps ecosystem, it has gained enough support from the venture capital industry. It has also managed to get multiple partnerships to support its developments for the short period which it has been in the market.

Of course, Aelf is far much behind when compared to the already developed similar projects, and its success will, therefore, depend on how many developers or projects are ready to work on it.

With a future filled with DApps and blockchain applications, Aelf is positioning itself to be a force which can be reckoned with.


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Wilson

Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at wilson@cryptomenow.com

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