Today we continue to talk about ALEO. What everyone knows about ALEO is that it is a privacy public chain. Everyone promotes ALEO as a privacy public chain, including the project party, which repeatedly emphasizes its privacy. But what I want to say is that privacy is not ALEO’s strongest narrative. ALEO does use zero-knowledge proof to play a role in privacy, but its strongest narrative is definitely not privacy. Its strongest narrative is that it can use zero-knowledge proof to achieve nearly infinite scalability, thereby breaking the blockchain’s impossible triangle.
Let's make a simple analogy here. For example, there are 10 people who have to solve 10 math equations. It takes one minute for each person to solve one equation. They have each finished their own equation, but they don't know whether the others have done it right. With the current blockchain technology implementation method, they each need to do the 9 equations done by others again, so that they can know whether others have done it right.
This is just like when we make a transaction or execute a smart contract on a public chain, each node needs to record it once. Everyone is doing the same thing, which not only wastes resources, but also has low efficiency. It can’t be improved at all, because everyone is doing the same work. What you have done once, he has to do it again, and the same goes for others. No matter how many people or nodes are added, the more they are added, the more wasteful it is. The more people repeat the same thing, the efficiency will even decrease as more people are added. This is the working mechanism of the current blockchain, and all blockchains have not broken through this working mechanism.
But after ALEO uses zero-knowledge proof, it can divide these 10 people into groups, 8 of whom are used to solve the problems, and the remaining 2 are used to verify the calculations. As for how to verify the calculations? For the sake of understanding and explanation, we will not do 10 problems here, but 8 problems, one for each of the 8 people. After the 8 people have calculated the equations assigned to them, the 2 people who verify the calculations only need to put the answers into the equations, and they can quickly verify whether this is the correct answer.
To make an inappropriate analogy, it takes each of these eight people one minute to solve a problem, but getting the answer and putting it into the equation for verification may only take a dozen seconds. This is the working mechanism of zero-knowledge proof.
That is to say, I have calculated the answer, and I have made a proof of the calculation process of the answer, and the verification process is very easy. In this way, the number of people doing the questions can be increased infinitely. I can increase it to one hundred, two hundred, five hundred, and a few nodes can fully verify them. This ensures both security and efficiency.
So this is ALEO’s most powerful narrative for the future. Because it gets rid of the working logic that each node of the blockchain must perform repeated verification, it makes the completely organic combination of traditional APP applications and blockchain a reality. So this is ALEO’s strongest narrative, and this is where its future value lies.
We all say that Bitcoin is the first revolution of blockchain, Ethereum is the second revolution of blockchain due to the addition of EVM smart contracts, and ALEO is the third technological revolution of blockchain due to the introduction of universal zero-knowledge proof.
In the future bull market, that is to say, the second half of this bull market, what we currently see is that the trend of Ethereum seems to be difficult to sustain. The outbreak of ALEO's diversified ecology will support the second half of this bull market.
That’s all for today. See you next time.
