Imagine a world where online interactions don't come at the cost of your privacy. Where you can participate, transact, and share data on your own terms, shrouded in a cloak of cryptography. This is the future envisioned by Aleo, a revolutionary blockchain project that throws open the doors to a privacy-centric internet. Let's delve into Aleo, exploring its technology, participants, and the diverse ecosystem it cultivates.
At its core, Aleo is a layer-1 blockchain that leverages zero-knowledge proofs (ZKPs) to unlock unprecedented possibilities for private applications. ZKPs allow users to prove the legitimacy of information without revealing the underlying data itself. This translates to applications where users can participate, interact, and share data confidently, with their privacy remaining more sacred.
Credit: A credit is the native asset of the network. It is used to pay for deployment and execution fees of zero-knowledge programs. Credits can also be staked on the network as a form of governance to protect the integrity and security of the protocol.
Microcredit: A microcredit is a subdivision of the native asset (credit). One credit can be further divided into smaller units, and a microcredit is one millionth of a credit.
Prover: A prover is a node on the network that computes zero-knowledge proofs. These proofs, which can be of two types (solutions and transactions), are crucial for validating and securing transactions and activities on the network.
Solutions: In the context of zero-knowledge proofs, a solution attests to the execution of a randomly-sampled Aleo program. When a prover successfully proves the execution, a reward is distributed to both the prover and the stakers on the network.
Transactions: Transactions attest to the execution of user-deployed Aleo programs. When a prover provides a valid transaction proof, a transaction fee is rewarded and distributed to the network.
Stakers: These individuals contribute to the network's security by locking up their Aleo credits (ALEO), earning rewards in return.
Validators: Similar to traditional blockchains, validators verify transactions and secure the network, ensuring its integrity and preventing fraud.
The robust architecture of Aleo rests on three key pillars:
AleoBFT is a DAG-based BFT protocol inspired by Narwhal and Bullshark. Validators propose batches of transmissions, await 2ƒ + 1 signatures, certify the batch, and advance rounds synchronously for an honest majority. In odd rounds, validators elect a leader for the previous even round, ensuring availability thresholds are met. This process ensures all validators advance together, assuming honesty.
Here’s how the Quorum for Block Production in Even Rounds is achieved:
The native token of the Aleo ecosystem, Aleo credits (ALEO), serve multiple purposes:
How Aleo Credits are distributed:
AleoBFT operates over a simple set of data structures - a committee, batch proposal, and block. Let’s understand these one-by-one:
Committee:
Batch Proposal: In each round, every committee member suggests a batch to certify, using batch proposals to communicate and maintain agreement on the DAG's status. Each batch proposal contains a Batch ID, Batch Header and a Batch Certificate.
Block: A block is created when the commit rule is activated in AleoBFT. It includes a block header, a sequence of batch certificates, ratifications, solutions, transactions, and a list of aborted transmission IDs.
The true mark of a successful blockchain lies in its ability to foster a vibrant community and diverse applications. Aleo boasts a rapidly growing ecosystem with projects already exploring its potential across various domains:
Talking about recent updates - Aleo is now considered as one of the top 5 fastest-growing ecosystems for overall developers. Also, Aleo has completed the security audits of snarkOS & snarkVM, which was performed by Trail of Bits.
Aleo worked hard to make the technical details of the project easier to understand. They've simplified and explained the main basics in a straightforward way. For example:
As a validator and staking infrastructure provider, Chorus One is deeply impressed by Aleo's groundbreaking approach to privacy in the blockchain space. The potential to unlock entirely new use cases and empower individuals with greater control over their data resonates deeply with our mission to build a more inclusive and accessible crypto ecosystem.
We're particularly excited about the unique technology stack, including snarkOS and snarkVM, which pave the way for scalable and efficient privacy-preserving applications. We believe Aleo has the potential to significantly impact various industries, from DeFi and healthcare to supply chain management, and Chorus One is proud to be a part of this journey. We are looking forward to actively contributing to the network's security and growth through staking infrastructure and look forward to witnessing Aleo's continued development and the exciting applications it enables.
Website: https://aleo.org/
Twitter: https://twitter.com/AleoHQ
Youtube: https://www.youtube.com/@AleoLabs/featured
Github: https://github.com/AleoHQ
Discord: https://discord.gg/aleo
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
As Ethereum restaking gains momentum, we wanted to take a moment to enumerate some of the risks that you as a user might be exposed to when choosing to restake your tokens. While restaking’s innovative consent can offer benefits to Ethereum staking, like generating more value for your staked tokens, it is also important to think clearly and consider some of these potential risks:
Slashing
As with any staking activity on Ethereum, your pledged ETH is subjected to networks rules that can result in the partial or total loss of your tokens, in the case of proven malicious activity that targets the network. Although slashing is a relatively rare occurrence (and has never happened to any of Chorus One’s validators), it is still the biggest risk you might be subjected to. When users are able to delegate tokens, they would be susceptible to slashing penalties from both Ethereum and Actively Validated Services (AVS's).
Smart contract risk
A more common source of risk is related to the smart contracts that govern the protocols and services on Ethereum, as they are susceptible to bugs on their code that can be exploited, as well as unexpected behavior under untested conditions. Projects built on Eigenlayer (like our OPUS 'Pool' restaking fuctions) ultimately secure their funds within the contracts of Eigenlayer. In the event of an attack on the Eigenlayer contract, the funds of associated projects may be jeopardized. This would be true as well of the code associated with different AVSs.
Eigenlayer has been audited twice in the past, a first audit done by Consensys Diligence, and a second audit done by Sigma Prime. You can read more about the auditing process here: https://docs.eigenlayer.xyz/eigenlayer/security/audits
Additional risks
Although the first two would be the most definitive scenarios that could have a direct effect on your restaked assets, there’s another suite of known (and possible unknown) risks that can be linked to this new technology:
Chorus One puts a premium on the security of all its users, recognizing its paramount importance in fostering trust and peace of mind. Through our comprehensive security framework, we ensure that your investments are well-protected: both, in our OPUS Pool and OPUS Dedicated products, in our underlying infrastructure, and at every step when deciding to onboard a network or protocol.
ISO 27001:2022 Certification
Chorus One adheres to stringent regulatory requirements, safeguarding your assets in accordance with data protection and privacy laws. In October 2023, we attained the coveted ISO 27001:2022 certification ensuring world-class security for all our customers.
Resilient infrastructure
We guarantee our high-quality of service with minimal disruptions, due to a strategic combination of multiple availability zones for our infrastructure; and network security procedures such as stringent access control, encrypted connections, firewall fortifications and security configurations. Our team is trained and provided with security awareness workshops to ensure our best line of defense.
Careful research process
Our dedicated research team conducts in depth due diligence on all the networks and protocols we onboard, to understand any potential risks we can be exposed to when participating on the systems. We go above and beyond to build a more security-minded ecosystem and to promote professional standards in the industry.
Learn more about Chorus One’s commitment to security here: https://security.chorus.one/
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
Since its introduction in 2008, the Bitcoin whitepaper has marked the beginning of a transformative journey. Nations have embraced it as official currency, companies have added Bitcoin to their assets, and in 2024, Bitcoin ETFs are actively being traded. Despite these advancements, Bitcoin has struggled to shed the perception of being merely a store of value, akin to digital gold. While it's true that facilitating smart contracts was not Bitcoin's initial aim, the explosive growth of decentralized finance (DeFi) prompts a thought-provoking question: could the functionalities of DeFi be integrated into Bitcoin?
This is where Bitcoin Layer 2 solutions, or L2s, come into play. Below, we'll delve into one of the most thrilling projects in this realm - Stacks.
⚡️Chorus One is proud to join the latest team of signers on Stacks and further enhance the network’s security and decentralization. Learn more here.
It's widely acknowledged that Bitcoin stands as the most decentralized and secure blockchain. However, the high cost of its block space, low TPS, along with the need for additional computing resources among other factors, have made the development of smart contracts on its platform particularly challenging. This situation paved the way for the emergence of networks dedicated to smart contracting, such as Ethereum. Stacks, however, offers a solution to this issue.
Stacks is a novel layer built atop Bitcoin and it extends the utility of the most secure and decentralized blockchain by introducing smart contracts and dApps functionalities without altering Bitcoin's core protocol. This integration is facilitated through the Proof of Transfer (PoX) consensus mechanism, a pioneering approach that reuses Bitcoin’s Proof of Work (PoW) to secure the Stacks network, enabling smart contracts that directly interact with Bitcoin state and transactions. The goal of the Stacks layer is to grow the Bitcoin economy, by turning BTC into a productive rather than passive asset, and by enabling various decentralized applications. The Stacks layer has its own global ledger and execution environment, to support smart contracts and to not overwhelm the Bitcoin blockchain with additional transactions. It also provides mechanisms for higher performance, such as fast blocks, decentralized peg, and subnets.
The question of the necessity for a Bitcoin Layer 2 revolves around the potential of integrating fully-expressive smart contracts into Bitcoin. Successfully embedding such functionality could revolutionize Bitcoin's application, ushering in new use cases worth hundreds of billions, including stablecoins, NFTs, and Automated Market Makers (AMMs). This evolution would transform Bitcoin from a passive asset into a cornerstone of digital finance, significantly boosting its demand, value, and utility by enabling a wide array of yet-to-be-explored applications.
For blockchains with native smart contract capabilities, essential features include the ability for smart contracts to be fully secured by the network's security mechanisms, such as hash power in Proof of Work (PoW) systems or staked assets in Proof of Stake (PoS) systems. This ensures that smart contracts benefit from the same level of security as the underlying blockchain. The smart contracts not only need to have ‘read’ but also ‘write’ capabilities. As a layer on top of Bitcoin, Stacks plans to bring these features to Bitcoin through the following elements:
STX: STX, the native token of Stacks, plays a pivotal role in the PoX (Proof-of-Transfer) consensus mechanism, serving two main functions: (a) incentivizing miners to secure the Stacks global ledger, which operates independently of Bitcoin's Layer 1, and (b) ensuring the operational continuity of the sBTC peg by providing rewards to threshold signers involved in the peg mechanism. STX was distributed to the public through the first-ever SEC-qualified token offering in US history and currently enjoys a market capitalization of over $4B.
PoX: Proof of Transfer (PoX) is a unique consensus mechanism to the Stacks blockchain that is designed to leverage the security and robustness of Bitcoin, while allowing Stacks to introduce smart contracts and decentralized applications (dApps) on top of Bitcoin. In typical Proof-of-work (PoW) systems, miners must solve complex mathematical problems. In PoX, miners must transfer a base cryptocurrency (in this case Bitcoin) to join the mining process. This Bitcoin is transferred to STX holders that participate in the network by sta(c)king their STX STX tokens, thus securing the network. So in PoX, you’re bidding Bitcoin in the hopes of being selected to add the next block to the chain versus committing computation power in the case of PoW. Like other networks, the miners on Stacks get block rewards but in STX and not BTC. This dual mechanism integrates the economic incentives of both Bitcoin and Stacks.
Stacking: Stacking is not staking, but the fundamental concept is very similar. Staking involves locking up token X and getting rewards with staking yields in the same token X. Eg - Stake SOL and get rewarded in SOL. Stacking mandates depositing STX tokens to get rewarded in a different token (BTC). This synergy between BTC and STX is interesting and actually incentivizes BTC holders to participate in the STX ecosystem. STX holders on the other side are incentivized to stack their tokens to be rewarded in arguably the most decentralized and secure cryptocurrency token BTC.
Signing: Post the Nakamoto release, the role between Miners and Stackers has been segregated. Where previously, miners decided the contents of the block and also decided whether or not to include them in the Stacks chain, now they would only be deciding the contents of the block and the stackers would be taking on the role of deciding whether to include them in the block or not. Stackers validate and sign blocks through a distributed signing protocol, requiring a significant fraction of locked STX to agree on block inclusion, thus preventing forks and enhancing the chain's integrity. Chorus One is proud to join the team of signers on Stacks along with other industry leaders likeBlockdaemon, NEAR Foundation, DeSpread, Alum Labs, Kiln, Luganodes, Copper, and Figment.
sBTC: sBTC is a fungible token that is pegged 1:1 with Bitcoin to enable Bitcoin holders to participate in the Stacks ecosystem. Users who want to interact with BTC and developers who want to create apps with BTC programmability can both use sBTC, thereby extending BTC’s utility beyond Bitcoin. To deposit BTC into sBTC, a Bitcoin holder would create a deposit transaction on the Bitcoin chain. This deposit transaction informs the protocol of how much BTC the holder has deposited, and to which Stacks address the holder wishes to receive the sBTC. The sBTC system responds to the deposit transaction by minting sBTC to the given Stacks address. To withdraw BTC, a Bitcoin holder creates a withdrawal transaction on the Bitcoin chain. This withdrawal transaction informs the protocol of how much sBTC the holder wishes to withdraw, from which Stacks address the sBTC should be withdrawn, and which Bitcoin address should receive the withdrawn BTC. In response to this transaction, the sBTC system burns the requested amount of sBTC from the given Stacks address and fulfills the withdrawal by issuing a BTC payment to the given BTC address with the same amount.
Clarity: Stacks also has its native programming language called Clarity, crafted with a focus on safety and security. The inspiration for Clarity's development was drawn from analyzing and addressing vulnerabilities commonly found in Solidity. By integrating these lessons, Clarity was meticulously designed to offer a secure coding environment, prioritizing the prevention of exploits right from its core. You can read more about Clarity in the online book - Clarity of Mind.
Total supply: ~1.82B
APY: 6% (BTC)
We currently support infrastructure for over 50 networks, and we're thrilled to announce that Stacks will mark our inaugural support for a Bitcoin Layer 2 solution. This is a significant milestone for Chorus One, largely due to the exceptional team behind Stacks, whose expertise and dedication have been evident over many years of development.
If you have STX tokens and would like to stack them, feel free to reach out to one of our experts at staking@chorus.one.
To read more about Stacks, we recommend the official documentation available in docs.stacks.co.
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
Proto-danksharding, blobs, and data availability are terms becoming increasingly familiar in the Ethereum community, all leading up to the Dencun Upgrade – Ethereum's most significant update since Shapella.
With less than a month to the upgrade, Chorus One is here to provide you the essential information about this pivotal event, including three key staking/validator based Ethereum Improvement Proposals (EIPs) involved, with a special focus on the much-anticipated EIP-4844.
In April 2023, we explored the post-Shapella landscape in our blog article "Beyond Shapella," highlighting the significant impact of the Shapella upgrade on Ethereum staking. This upgrade introduced the flexibility to withdraw staked ETH and rewards, captivating institutional interest in Ethereum, the second-largest cryptocurrency by market cap.
The Shapella upgrade marked a turning point, boosting ETH's staking appeal among institutional investors. Since then, Ethereum's roadmap has seen several developments, leading us to the brink of another major milestone - the Dencun upgrade. This forthcoming hard fork is set to advance Ethereum's evolution, promising to tackle existing challenges and open up new opportunities.
In fact, Ethereum jumped 28% since the start of February and rose above $2,900 at the time of writing, as the Dencun upgrade approaches and transaction numbers on L2s climb up.
The Ethereum Cancun-Deneb (Dencun) Upgrade, scheduled for March 13, 2024, is a pivotal hard fork aimed at enhancing the network's scalability, security, and usability. This upgrade, incorporating key Ethereum Improvement Proposals (EIPs) such as EIP-4844 for proto-danksharding, is set to improve network efficiency and lower transaction costs. Building on the achievements of prior updates like the Shanghai upgrade, Dencun seeks to fortify the infrastructure for decentralized applications and elevate the Ethereum user experience.
At its heart, the Dencun Upgrade integrates advancements from the Cancun upgrade on the execution layer with those from the Deneb upgrade on the consensus layer, employing a dual approach to refine Ethereum's protocol rules and block validation procedures. The inclusion of various Ethereum Improvement Proposals (EIPs), especially Proto-Danksharding, is geared towards enhancing scalability from different dimensions.
Additionally, the upgrade will introduce a series of other EIPs, including EIP-4788, EIP-6780, and EIP-5656. While this article will concentrate on the most crucial proposal, EIP 4844: Protodanksharding, it will also touch upon three staking and validator-centric improvements within the Dencun Upgrade: EIP-7044, EIP-7045, and EIP-7514.
EIP 7044: Perpetually Valid Signed Voluntary Exits
The introduction of EIP-7044 marks a significant advancement: exit messages will have indefinite validity, removing the need for continual updates and ensuring a smoother withdrawal process. This EIP specifically targets the challenge posed by the limited lifespan of signed voluntary exit messages, simplifying the staking landscape, especially in cases where the staking operators and fund owners are not the same.
TL;DR: EIP-7044 makes it easier to withdraw staked funds by ensuring that exit requests don't expire. This removes the hassle of having to update these requests regularly, especially helpful when the staking operators and fund owners are different.
EIP 7045: Increase max attestation inclusion slot
EIP-7045 modifies the timeline for attestations, extending the inclusion period from one rolling epoch to two fixed epochs. This adjustment gives validators additional time to incorporate their attestations into a block, thereby enhancing the security and stability of Ethereum's Proof of Stake (PoS) consensus mechanism. The expansion of maximum attestation slots contributes to quicker block confirmations and bolsters the consensus mechanism's resistance to short-term censorship attempts.
TL;DR: EIP-7045 changes how long validators have to get their approvals into a block, extending it from one flexible time period to two set time periods. This extra time helps make Ethereum's system for confirming transactions more secure and stable, speeds up the process of confirming blocks, and makes it harder for anyone to temporarily block or censor transactions.
EIP-7514: Add max epoch churn limit
EIP-7514 proposes to change how fast new validators can join the Ethereum network. Instead of the current system where the number of new validators can grow quickly (exponentially) because the amount of new validators accepted also grows, this proposal suggests a steady (linear) increase by setting a limit of 8 new validators per epoch (~6.4 minutes). This means no matter how many people want to become validators and how big the active set grows, only 8 will be able to join in each epoch. This approach aims to make the network more manageable, especially when a lot of people are waiting to stake their ETH. It helps prevent the network from getting overloaded and keeps everything running smoothly.
TL;DR: EIP-7514 plans to limit the number of new validators joining the Ethereum network to 8 every 6.4 minutes. This change aims to control growth and prevent the system from becoming overloaded, ensuring it runs smoothly even when many people want to stake their ETH.
EIP-4844, known as Proto-Danksharding, is a key update to Ethereum that introduces a new type of transaction called "blobs", for better data storage efficiency. This allows for more cost-effective data posting to the Ethereum mainnet by Rollup sequencers, without overloading the network, due to the controlled size and quantity of blobs in each block. The innovative aspect is the temporary storage of blob data in Ethereum's consensus layer, not its execution layer, which boosts scalability while keeping the network decentralized. Proto-danksharding sets the stage for further scalability enhancements, such as full Danksharding, by improving gas consumption and network resource management.
Proto-danksharding allows these rollups to employ data blobs for posting grouped transactions more affordably, greatly decreasing operational expenses and enhancing scalability.
The Dencun upgrade is set to significantly enhance Ethereum's appeal, making it more attractive for developers, builders, and investors, by boosting transaction efficiency and cutting costs.
At Chorus One, we've been diligently preparing for this upgrade, ensuring our clients and software are updated in a timely manner to prevent any impact on our users. Our proactive approach underscores our dedication to facilitating a smooth transition and maintaining strong staking support after the upgrade.
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures.
