If Bitcoin and Ethereum are the Microsoft and Apple of the blockchain, then who will be the Linux? Aelf (Pronounced Elf) is hoping that it will be them.
By taking on the task of creating a decentralized cloud computing blockchain, they have high hopes to be able to bring the blockchain to new heights.
Versatility and scalability are the current buzzwords when talking about blockchain. A new system needs to be put in place that can solve the issues that have become inherent in the blockchain technology.
Though the concept of the blockchain has been around for just about 10 years, it really has only taken off in the last 3-5 years as something that could go beyond just a financial system. Mainly because of the idea of the smart contract introduced by Ethereum.
Seeing the inefficiencies of current blockchains, Aelf has come up with a main blockchain that incorporates side chains and can enable transactions between other blockchains, like Bitcoin or Ethereum.
How To Buy ELF
So you’re interested in buying ELF? Currently, there is no way to buy ELF directly with fiat, so the best way to buy ELF is to first purchase Ethereum, transfer it to your chosen trading platform and change it to ELF. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for ELF/ETH and confirm.
3. On the ELF/ETH trading section you can now choose how much ELF you want to buy with your Ether. Once you have chosen your amount, press Buy ELF and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of ELF.
What Does Aelf Do?
The Aelf blockchain system is very ambitious, so let’s go through it one piece at a time.
The developers insist that the system will be like a Linux Ecosystem acting as a blockchain Operating System that other developers can customize according to their needs. This will be especially helpful when it comes to commercial applications. Users can either use the complete Blockchain OS, or rapidly develop a customized OS based on the Core.
Using the blockchain to do cloud computing will need to be as fast and hassle free as a central server cloud. Many industries are eager to get into a blockchain. Lower fees and added security being chief among the reasons to want to get on board. But, if the blockchain is slow or clunky, then they have no reason to try.
A flexible system like Aelf is proposing would be very attractive.
The next big idea from Aelf is to utilize side chains. Believing that the one size fits all approach of previous blockchains is already outdated, they want each of the side chains to work independently of each other. Each side chain will not only be its own blockchain, but they will also serve as “business districts”. This will help keep traffic and transaction times down.
In this way, businesses can operate in their own ecosphere. Bottlenecks get created when, say a futures trading company gets slowed down by an ICO happening on the same chain. Side chains will not be able to communicate directly with each other, only through the main chain. This keeps traffic flowing along the main chain and diverting to the relevant side chains.
Cross chain interaction will be one of the key features of Aelf’s blockchain. Digital assets and information will be shared across chains like Ethereum and Bitcoin and any other chain, through messaging apps.
They’re not the only blockchain trying to do this, but they feel that the weak link with other platforms is in the messaging system between blocks. Though at the moment it’s unclear how they differ from the others, there seems to be a plan in place to address issues with cross chain communications.
They plan to utilize a Genesis block, which will define the basic component of what a minimum viable block can be, as well as a Genesis Smart Contract. This keeps the data structure in the block simple and customisable. Again, they are trying to avoid a one size fits all system and believe that this will be attractive to the developers of digital business projects.
It’s in that vein that they are doing everything possible to become the blockchain favored by businesses. The parallel processing feature is capable of handling business transactions at international scale and the inter-chain communication feature allows smooth coordination from asset registration, account management and enables real time transactions. This will be especially important to financial institutions as they rely on speed for market trading.
The smart contracts on side chains will be a big benefit to insurance companies, as well. With various Dapps (digital applications) able to function on the blocks, it can streamline a complicated process and cut down on claim times, among other use cases.
The Internet of Things can find a home on the blockchain and away from a central server. Aelf supports light node and cloud service, which reduces the computational
requirement for devices connected to it, while maintaining high performance.
How Does Aelf Work?
The main chain will operate in a DPoS (Delegated Proof of Stake) protocol. Building consensus will happen by token holders voting for delegates to validate the blocks. This will not only be efficient and result in faster transaction times, but will help keep the system functioning by being more engaged.
Delegates will govern how the system functions by submitting the source code and delegating mining nodes to review and vote. Foundation members will provide open-source code and submit new features. If one feature is adopted by enough
delegates, it gains approval by the whole system.
On the side chain Proof of Work will happen, but mining nodes will happen in clusters. Since each side chain is independent of each other and off of the main chain, the mining shouldn’t need too much computational power.
Keeping the delegation system running smoothly will happen by designating certain nodes with special tasks. And each delegated node needs enough votes from the stake holders to participate in the governance of the platform. This came about after seeing how Bitcoin needed to hard fork because there was no way to build consensus on the future of the blockchain.
How Do the ELF Tokens Work?
First and foremost the function of the ELF token is to foster honest behavior. In a DPoS system, the token holders can lose their tokens if they try to validate bad blocks or try to game the system. This keeps everybody incentivized to see to it that the blockchain stays bug free and less likely to be hacked from within.
The tokens themselves will be used to pay for deployment of smart contracts, operating and upgrading of systems (transaction fees, cross-chain data transfer fees). It also enables delegates to vote on major decisions, such as electing mining nodes, introducing new features to the system and other major decisions.
When a side chain applies to be indexed by the Main Chain, it receives some locked in
tokens from the Main Chain. They then use some of those tokens to pay for miners to validate the blocks of their own private chain.
As is the case with other native tokens to a blockchain, the value rises as the platform sees widespread adoption. The more people that use it, the more fees are generated and the more delegates will vote on consensus. This means faster transaction times and, thus, more users likely to use the platform.
As blockchains rapidly get developed and the value of tokens and coins rises and falls daily, it is easy to forget that development takes time. Aelf is a very ambitious project that may take a couple of years to develop. Years in the blockchain world may seem like an eternity, but once these scalability issues are solved, then the benefit of waiting for the technology to catch up with the vision will be understood.
Aelf may not be doing anything that hasn’t already been promised by other blockchains like Ark, but, by niching down and focusing on businesses and their needs should put it in an interesting position. By picking one thing and doing it well, Aelf may carve themselves out a nice corner of the blockchain market.