The design concept of #ALEO is very novel. It puts the transaction information off-chain, executes it through zk cloud zero-knowledge proof, and finally feeds the result back to the main chain for confirmation, so the main network can do more.

At present, it is known that all blockchain transaction information is on-chain, which occupies a lot of resources on the main network.

The reasons for the continuous decline of ALEO and community panic during this period:

① The distance between the expected TPS and the official release is too far. The original design TPS is 10K to 20K, and the current main network has only 10-12 transactions/second

② POS output is much greater than POW output. Miners spend a lot of money to support the ALEO network, and the return is not as expected, causing dissatisfaction among miners.

At the same time, inflation is greater than expected at 16%, which was originally expected to be 5%

③ The official explanation of community opinions and related issues is very little, resulting in low community sentiment, coupled with the continuous decline in currency prices, causing panic selling sentiment.

Note: The ARC43 algorithm upgrade was originally scheduled for December 10 and started at 2.8 million blocks.

Mainly solve the problem: reduce POS output, increase POW output, and reduce inflation to around 5%. TPS will be improved accordingly, and the overall performance of the main network will be improved.

Dawn is just ahead. The fact that Coinbase can launch ALEO means that the problem of privacy coin supervision has been solved, and ALEO officials pay attention to compliance.

The specific situation will depend on the actual operation after the algorithm is upgraded to the main network.

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