What is the Aleph Zero (AZERO) Chain? - Bitfinex blog
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What is the Aleph Zero (AZERO) Chain?

Aleph Zero aims to address critical challenges that hinder the widespread adoption and functionality of blockchain technologies. These well-known challenges include scalability, security, privacy, and the overall user and developer experience. It is the Aleph Zero team’s view that traditional blockchains like Bitcoin and Ethereum face limitations in scalability, with transaction times that fall short of the requirements for global adoption, due to lengthy confirmation times. Aleph Zero’s architecture promises instant finality, scalable consensus and smart contract platforms, and presents itself as a viable infrastructure for decentralised applications.

Aleph Zero says it addresses the security vulnerabilities of other blockchains through its AlephBFT consensus protocol, which offers robust security by tolerating up to 33% of malicious committee members and ensuring the network’s asynchronicity. This consensus mechanism, because it is devoid of a singular controlling node, enhances resilience against distributed denial-of-service (DDoS) attacks and facilitates smooth protocol recovery post-network partitions, thereby promising a higher degree of security and reliability for its users.

On the privacy front, Aleph Zero introduces a sophisticated approach by integrating technologies like Zero-Knowledge Proofs (ZK-SNARKs) and Multi-Party Computation (MPC). This combination allows for private computations on user data and supports private multi-user interactions, enabling applications such as private voting and decentralised finance (DeFi) protocols. Such privacy measures aim to restore control over personal data to users, aligning with growing demands for privacy and data security in the digital age.

The Aleph Zero ecosystem is underpinned by its native AZERO coin, which plays a crucial role in network security through staking, transaction fee payments, and governance. The coin’s utility extends across various functionalities within the Aleph Zero platform, including decentralised exchange fees and collateral for wrapped assets. Aleph Zero’s commitment to eco-friendliness can be seen in its effort to become a carbon-negative blockchain, joining initiatives like the Crypto Climate Accord and undertaking CO2 offset programs. This environmental consciousness, coupled with its technical innovations, positions Aleph Zero as a forward-thinking blockchain solution aiming to redefine the landscape of decentralised technologies.

What is the AZERO Token?

The AZERO token is the native cryptocurrency of Aleph Zero. It serves several key functions essential for the network’s operation, security, and utility. Holders of AZERO can participate in the network’s security by staking their tokens. This process involves locking tokens to support the network’s consensus mechanism while earning staking rewards, helping to maintain its integrity and resilience against attacks.

AZERO is used to pay for transaction fees on the Aleph Zero network. These fees compensate validators for processing transactions and securing the network, ensuring efficient operation and scalability.

Within the Aleph Zero ecosystem, AZERO tokens can be used to pay for swap fees on Decentralised Exchanges (DEXs). This facilitates liquidity and trading of various assets in a decentralised manner.

The platform’s multichain privacy solution, Liminal, allows for the wrapping of assets. AZERO serves as collateral for these wrapped assets, enabling secure and private transactions across different blockchain networks.

AZERO holders can participate in the governance of the Aleph Zero network. This includes voting on proposals that shape the network’s development, parameters, and future direction, ensuring a decentralised and community-driven approach to governance.

AZERO Tokenomics

The Aleph Zero blockchain project has structured its token distribution with a strategic allocation to support its development, growth, and community engagement. Of its total token supply, 23% is dedicated to the Aleph Zero Foundation, and 10% to the project’s team, underlining the commitment to long-term research, development, marketing, and operational enhancements. The Foundation’s allocation is primarily aimed at bolstering the ecosystem through an ecosystem fund, with a significant emphasis on fostering innovation and ensuring robust operational capacity. Future phases of the project’s development will see the community gaining voting rights on the treasury’s non-core expenditures, marking a step towards greater decentralisation and community involvement.

For the team’s portion, a cautious approach to token release is adopted, with 80% of their tokens being locked for a year, followed by a four-year vesting period. This method reflects a commitment to the project’s longevity and success. Funding rounds have played a crucial role in Aleph Zero’s journey, starting with a pre-seed round in 2018 where tokens were issued at $0.04 each, following a Simple Agreement for Future Tokens (SAFT) model. This round saw 16.667% of the coins distributed, with half becoming available at the Token Generation Event (TGE) and the remainder vested over 15 months.

Subsequent funding rounds, including a seed round and a special Early Community round, offered tokens at progressively higher prices, with varying vesting conditions to balance immediate liquidity with long-term stakeholder commitment. The public presale and sale phases further expanded the token distribution, culminating in a public sale priced at $0.10 per coin, a significant increase from the initial pre-seed price. All tokens from the public sale were made available at TGE, providing both liquidity and an incentive for new participants in the Aleph Zero ecosystem.

How to buy AZERO with crypto

1. Log in to your Bitfinex account or sign up to create one.

2. Go to the Deposit page.

3. In the Cryptocurrencies section, choose the crypto you plan to buy AZERO with and generate a deposit address on the Exchange wallet.

4. Send the crypto to the generated deposit address.

5. Once the funds arrive in your wallet, you can trade them for AZERO. Learn how to trade on Bitfinex here.

How to buy AZERO with fiat

1. Log in to your Bitfinex account or sign up to create one.

2. You need to get full verification to be able to deposit fiat to your Bitfinex account. Learn about different verification levels here.

3. On the Deposit page, under the Bank Wire menu, choose the fiat currency of your deposit. There’s a minimum amount for fiat deposits on Bitfinex; learn more here.

4. Check your Bitfinex registered email for the wire details.

5. Send the funds.

6. Once the funds arrive in your wallet, you can use them to buy AZERO.

Also, we have Bitfinex on mobile, so you can easily buy AZERO currency while on-the-go.

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