Aleph Zero is blockchain infrastructure unique for its speed and scalability and ZK privacy features. While launched as a Substrate-based layer 1, it is now expanding to the EVM.
In June 2024, the Aleph Zero Foundation launched the testnet for its EVM-compatible, privacy-focused Layer 2 (L2) solution called Aleph Zero EVM. This L2 uses zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato’s rollup-as-a-service (RaaS) platform to introduce the first EVM-compatible privacy solution with subsecond ZK proving times. Along with this, the foundation released zkOS, a client-side, chain-agnostic ZK privacy system aiming to enhance the user experience when utilizing on-chain privacy solutions.
This report will detail Aleph Zero’s existing privacy solutions, the new EVM compatible Layer 2, zkOS, and more from Aleph Zero’s exciting Q2 2024.
A New EVM-compatible Layer 2 and zkOS Launch
In June 2024, the Aleph Zero Foundation launched the testnet for its own EVM-compatible, privacy-focused Layer 2 (L2) solution. The L2 utilizes zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato's rollup-as-a-service (RaaS) platform. This development marks the first EVM-compatible privacy solution capable of achieving subsecond ZK proving times.
In tandem with this release, the Aleph Zero Foundation also unveiled its long-term vision for zkOS, a client-side, chain-agnostic ZK privacy system. This initiative aims to elevate user experience with on-chain privacy through a system designed to support Privacy-as-a-Service (PaaS) via seamless application integrations on WebAssembly (WASM) and EVM-compatible networks.
The introduction of these technologies represents a pivotal sea change for Aleph Zero by becoming more interoperable with the EVM and heralding a privacy-focused product toward multichain expansion. By integrating zkOS, users can conduct private transactions and interact with decentralized applications (dApps) without compromising their data security, as zero-knowledge proofs are computed directly on their devices.
Aleph Zero Existing Privacy Solutions
Prior to these announcements, Aleph Zero was already a prominent figure in the blockchain privacy world. Current privacy solutions in the blockchain space are based on two main approaches: software-based zero-knowledge (ZK) proofs and hardware-based TEEs. Each has its pros and cons. ZK proofs allow one party (the prover) to prove that certain data is correct without revealing any information about the data itself–in another way, this allows users to use their personal data on-chain without revealing it at any time–or transact privately without disclosing the amounts held and transaction details.
Alternatively, TEEs achieve similar levels of privacy but require specific hardware called TEEs, Trusted Execution Environment. TEEs are widely used in smart phones, powering Secure Enclave in iPhones as an example, where data such as cards linked to Apple’s Wallet are held offline, in a closed environment. TEEs require vendor lockup, with Intel being the most widely used. There’s also some level of trust needed in the fact that TEEs are produced securely and blockchain networks using this technolgy for privacy require validators to run specific hardware.
Aleph Zero believes that the software-based approach is more scalable and safer in the long term.
The Landscape of zkOS and Aleph Zero
Aleph Zero’s zkOS consists of several components that achieve both EVM compatibility and privacy and are easy for individuals and builders to use.
zkOS
zkOS is the umbrella of all privacy features on Aleph Zero that are powered by Zero Knowledge technology. Based on Aleph Zero’s optimizations, it can generate ZK proofs in less than a second, according to the benchmarks. This advances the user experience of interacting with ZK-enabled apps that so far require intensive computing power and, as a consequence, significant amounts of time to generate the proofs.
zkToolkit
To ensure adoption of Aleph Zero’s privacy technology, zkOS will come with a set of developer tools that allow for easy integration of zkOS into existing and new applications. This solves one of the major hurdles in the ZK space which requires deep cryptographic knowledge to be able to integrate such privacy-preserving products. Among the tools, there are customizable plugins, persistent ZK identity that solves the compliance aspects of privacy technology, and others.
Aleph Zero EVM
Aleph Zero EVM is the new layer 2, standing out with its ZK privacy features that enable wider distribution of Aleph Zero’s technology, serving the Ethereum ecosystem users and builders. It allows for deploying Layer 3 chains on top of it, will use Aleph Zero Layer 1 as the Data Availability layer, and is powered by the same AZERO token as on Layer 1.
Aleph Zero WASM
Aleph Zero’s layer 1 is built using the Substrate framework, WASM smart contracts, and the ink! programming language. Thanks to its AlephBFT consensus and well-designed implementation, it maintains subsecond finality, high scalability, and 100% uptime.
Aleph Zero DA
Aleph Zero Data Availability (DA) layer leverages the layer 1 network’s low transaction and storage fees and high throughput to store the data for the EVM layer 2.
The New EVM-compatible Layer 2 and Its Significance
Aleph Zero has traditionally been known for its Substrate-based WASM L1 blockchain, which launched in 2021, and its privacy-centric ethos. Now, going forward, the narrative around the L1 is set to change as it can now also act as the data availability layer for the L2 EVM layer, its applications, and L3 appchains. The expansion into Ethereum aims to enhance the accessibility of Aleph Zero's technology, offering greater flexibility for ecosystem developers and enabling the export of Aleph Zero's on-chain confidentiality features to the broader Ethereum community. Let’s dive into how Aleph Zero stands to benefit from EVM-compatibility and Arbitrum’s Orbit technology.
Why EVM Compatibility Matters
The Ethereum Virtual Machine (EVM) is the core computation engine of the Ethereum network. It’s at the heart of the Ethereum network and is where smart contracts are deployed and executed. It is also responsible for managing Ethereum’s vast memory and state. The EVM defines the rules of how the state of all accounts on the network can change from block to block. For a smart contract to work it must follow the rules of the EVM. Users interact with smart contracts by sending transactions that call specific functions of the contract.
The benefits of EVM compatibility are numerous, but the chief ones are interoperability and development efficiency. As the blockchain ecosystem grows, communication between different chains and access to their liquidity and features becomes more important. This interoperability allows new projects to reach a wider user base. For example, a token contract on EVM-compatible chains is basically the same, so bridging tokens from one chain to another is much simpler, and users have far more bridging options. Additionally, users can manage their tokens with the same wallet public key (address) across different EVM networks. Tools like Metamask allow users to have the same wallet address on all EVM networks, making switching between networks is as simple as clicking a button.
Developers can also use the same code with minimal changes to deploy on different chains. This reduces friction and enables other protocols to potentially tap into Ethereum’s industry-leading developer pool. The development landscape of the blockchain ecosystem shows Ethereum with around 2400 active developers in 2023, followed by Polkadot and Polygon with around 800 each, then Cosmos, Arbitrum, BNB, and Avalanche with 400-500 developers each. Most of these are EVM-compatible chains.
Having a large pool of active developers is key in today’s market. Not all developers on EVM-compatible chains write EVM code, but the number of developers on these chains shows the ecosystem is robust. Additionally, the EVM’s dominance in the blockchain space has led other chains to adopt its code, so you can run EVM code on their platforms. For example, Polkadot built on Substrate uses Substrate EVM to allow unmodified Solidity code to be deployed on its chain.
Good development requires tools, support and documentation, which tends to grow with the platform. Ethereum leads in this area, followed by other popular platforms like Solana. Solidity, the language of EVM, is relatively easy to learn as it’s similar to JavaScript, which is a language most developers are familiar with. Vyper, another language for EVM, is close to Python, another popular language. Languages like Haskell used for Plutus on Cardano have a steeper learning curve as they are complex and less known among developers.
Beyond the developer benefits, EVM compatible chains use the ERC20 token standard, so listing tokens on multiple exchanges, both DEX and CEX is much simpler. Centralized exchanges charge higher fees for listing non-ERC20 tokens if they list them at all. This compatibility saves costs for crypto projects that want to list their tokens on multiple platforms.
What is Arbitrum Orbit?
Arbitrum Orbit is a development framework crafted for the creation of alternative L2s and L3s. This design retains the security of L2s while exponentially boosting scalability as each layer enhances throughput further. The framework enables the Arbitrum DAO to grant intellectual property rights for L2 development while allowing the permissionless creation of L3s through the Orbit program. This dual approach benefits both Arbitrum and L3 developers, offering flexibility and control. The DAO can set terms and potentially restrict L2 competitors from using Arbitrum technology, creating a value accrual model for ARB token holders. L3s on Arbitrum pay fees to Arbitrum sequencers, ensuring economic benefits from the open-source code.
The Orbit framework supports the deployment of Ethereum Virtual Machine (EVM)-compatible applications using various programming languages, including C, C++, Rust, Solidity, and Vyper. This versatility attracts a diverse developer community, such as Aleph Zero. Additionally, by utilizing Arbitrum’s technology, Aleph Zero's EVM Layer 2 can provide a secure, scalable, and fast execution environment. It achieves up to 250 milliseconds block time with near-instant transaction finality and can process thousands of transactions per second, positioning it as one of the fastest EVM chains available.
A unique feature of Orbit chains is the "elastic block time" mechanism, which optimizes user experience and operational costs by adjusting block production rates based on network demand. During low activity periods, it halts block production to save resources and avoid unnecessary Ethereum settlement costs. During high activity, it can produce up to four blocks per second to maintain efficient transaction processing.
Layer 2 Testnet
Aleph Zero's ZK-privacy EVM Layer 2 is currently in Developer Testnet mode. The testnet presents an opportunity to integrate both existing and emerging use cases into the platform's infrastructure prior to mainnet launch. Aleph Zero's Developer Mainnet is set for release in the third quarter of 2024.
The Developer Testnet introduces a comprehensive suite of developer tools, including Gelato’s industry-standard web3 services such as Relayers, Account Abstraction, Functions, and Verifiable Random Functions (VRF). Additionally, it supports third-party infrastructure like oracles, block explorers, indexers, and multi-signature wallets. This extensive toolkit renders Aleph Zero’s new EVM Layer 2 a versatile and general-purpose platform.
Initial performance benchmarks indicate that Aleph Zero’s zkOS zero-knowledge proofs can be executed within 600-800 milliseconds on devices equipped with MacBooks (M1-M3 processors) and Intel Core i7-i9 PCs using standard web browsers like Safari or Chrome.
MOST Bridge Goes Live, Deepening the Ethereum Connection
Historically, Aleph Zero has been unique among blockchains for its lack of bridges and connectivity to other Layer 1 (L1) chains. This limitation has restricted its user experience and reach within the broader crypto space. However, the introduction of MOST changes this dynamic, providing a bridge to Ethereum’s extensive Total Value Locked (TVL), liquidity, and DeFi ecosystem.
The first major integration for the MOST bridge is with the Ethereum network. This strategic move is expected to stimulate the Aleph Zero ecosystem while offering Ethereum users access to Aleph Zero’s high-speed and privacy-centric capabilities. The launch of MOST aligns with Aleph Zero's broader strategy to enhance interconnectivity and modular solutions across different blockchain ecosystems.
MOST, as the frontend interface of Common, boasts a user-friendly design that serves as a gateway for users to transfer external liquidity and stablecoins to Aleph Zero. Here is a detailed breakdown of how to move assets from Ethereum to the Aleph Zero ecosystem using the MOST bridge:
- Access the MOST Interface: Navigate to the MOST interface on Common’s front end.
- Connect Your Wallet: Connect your Ethereum wallet to the MOST bridge.
- Select Assets to Bridge: Choose the assets you want to move to Aleph Zero.
- Initiate the Transfer: Follow the prompts to initiate the transfer, ensuring you approve the transaction in your Ethereum wallet.
- Confirm the Transaction: Wait for the transaction to be confirmed by the network guardians and finalized on the Aleph Zero blockchain.
zkOS and Its Early Adoption
Aleph Zero's innovative approach to integrating ZK-privacy into EVM and WASM-compatible networks positions it at the forefront of the blockchain privacy discussion. The testnet release and the strategic roadmap for zkOS highlight the future of on-chain privacy that the current crypto industry lacks. The zkOS is designed to unify all of the company's privacy products into an easy-to-use framework for developers. This platform allows for the integration of confidentiality features without needing extensive knowledge of cryptography. The goal is to make web3 on-chain privacy infrastructure more accessible, user-friendly, and economically advantageous.
Several projects have already committed to leveraging Aleph Zero’s zkOS technology to enhance their offerings and improve their privacy features. Holyheld is among the first to try the technology and enhance its card payments with advanced privacy features. DRKVRS, a unique action RPG game, is another to be built on the Aleph Zero EVM. This game employs zkOS to introduce privacy features, ensuring that players’ activities and data remain confidential while delivering an immersive gaming experience. Household name Rarible, a prominent NFT marketplace, is also integrating Aleph Zero EVM into its platform. This integration allows artists and creators using Aleph Zero to join Rarible’s extensive community, expanding their reach and opportunities within the NFT ecosystem. Finally, Common is developing an all-encompassing Private DeFi Suite that addresses custody, liquidity, and privacy issues in both centralized and decentralized exchange offerings. By expanding into the EVM ecosystem through Aleph Zero’s EVM, Common aims to provide a cost-effective and fast DeFi solution.
These diverse use cases underscore the versatility and potential of Aleph Zero and zkOS, highlighting their ability to enhance privacy, security, and functionality across various sectors within the blockchain space.
Conclusion
Aleph Zero's advancements represent a transformative leap in integrating robust privacy features on them EVM. The launch of the EVM-compatible Layer 2 and zkOS cement Aleph Zero as a leading force in the realm of blockchain privacy and scalability. As Aleph Zero continues to develop and refine its technologies, it is poised to significantly impact the blockchain landscape, offering developers and users unparalleled privacy, speed, and interoperability.
Disclaimer: This report was commissioned by the Aleph Zero Foundation. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Aleph Zero is blockchain infrastructure unique for its speed and scalability and ZK privacy features. While launched as a Substrate-based layer 1, it is now expanding to the EVM.
In June 2024, the Aleph Zero Foundation launched the testnet for its EVM-compatible, privacy-focused Layer 2 (L2) solution called Aleph Zero EVM. This L2 uses zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato’s rollup-as-a-service (RaaS) platform to introduce the first EVM-compatible privacy solution with subsecond ZK proving times. Along with this, the foundation released zkOS, a client-side, chain-agnostic ZK privacy system aiming to enhance the user experience when utilizing on-chain privacy solutions.
This report will detail Aleph Zero’s existing privacy solutions, the new EVM compatible Layer 2, zkOS, and more from Aleph Zero’s exciting Q2 2024.
A New EVM-compatible Layer 2 and zkOS Launch
In June 2024, the Aleph Zero Foundation launched the testnet for its own EVM-compatible, privacy-focused Layer 2 (L2) solution. The L2 utilizes zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato's rollup-as-a-service (RaaS) platform. This development marks the first EVM-compatible privacy solution capable of achieving subsecond ZK proving times.
In tandem with this release, the Aleph Zero Foundation also unveiled its long-term vision for zkOS, a client-side, chain-agnostic ZK privacy system. This initiative aims to elevate user experience with on-chain privacy through a system designed to support Privacy-as-a-Service (PaaS) via seamless application integrations on WebAssembly (WASM) and EVM-compatible networks.
The introduction of these technologies represents a pivotal sea change for Aleph Zero by becoming more interoperable with the EVM and heralding a privacy-focused product toward multichain expansion. By integrating zkOS, users can conduct private transactions and interact with decentralized applications (dApps) without compromising their data security, as zero-knowledge proofs are computed directly on their devices.
Aleph Zero Existing Privacy Solutions
Prior to these announcements, Aleph Zero was already a prominent figure in the blockchain privacy world. Current privacy solutions in the blockchain space are based on two main approaches: software-based zero-knowledge (ZK) proofs and hardware-based TEEs. Each has its pros and cons. ZK proofs allow one party (the prover) to prove that certain data is correct without revealing any information about the data itself–in another way, this allows users to use their personal data on-chain without revealing it at any time–or transact privately without disclosing the amounts held and transaction details.
Alternatively, TEEs achieve similar levels of privacy but require specific hardware called TEEs, Trusted Execution Environment. TEEs are widely used in smart phones, powering Secure Enclave in iPhones as an example, where data such as cards linked to Apple’s Wallet are held offline, in a closed environment. TEEs require vendor lockup, with Intel being the most widely used. There’s also some level of trust needed in the fact that TEEs are produced securely and blockchain networks using this technolgy for privacy require validators to run specific hardware.
Aleph Zero believes that the software-based approach is more scalable and safer in the long term.
The Landscape of zkOS and Aleph Zero
Aleph Zero’s zkOS consists of several components that achieve both EVM compatibility and privacy and are easy for individuals and builders to use.
zkOS
zkOS is the umbrella of all privacy features on Aleph Zero that are powered by Zero Knowledge technology. Based on Aleph Zero’s optimizations, it can generate ZK proofs in less than a second, according to the benchmarks. This advances the user experience of interacting with ZK-enabled apps that so far require intensive computing power and, as a consequence, significant amounts of time to generate the proofs.
zkToolkit
To ensure adoption of Aleph Zero’s privacy technology, zkOS will come with a set of developer tools that allow for easy integration of zkOS into existing and new applications. This solves one of the major hurdles in the ZK space which requires deep cryptographic knowledge to be able to integrate such privacy-preserving products. Among the tools, there are customizable plugins, persistent ZK identity that solves the compliance aspects of privacy technology, and others.
Aleph Zero EVM
Aleph Zero EVM is the new layer 2, standing out with its ZK privacy features that enable wider distribution of Aleph Zero’s technology, serving the Ethereum ecosystem users and builders. It allows for deploying Layer 3 chains on top of it, will use Aleph Zero Layer 1 as the Data Availability layer, and is powered by the same AZERO token as on Layer 1.
Aleph Zero WASM
Aleph Zero’s layer 1 is built using the Substrate framework, WASM smart contracts, and the ink! programming language. Thanks to its AlephBFT consensus and well-designed implementation, it maintains subsecond finality, high scalability, and 100% uptime.
Aleph Zero DA
Aleph Zero Data Availability (DA) layer leverages the layer 1 network’s low transaction and storage fees and high throughput to store the data for the EVM layer 2.
The New EVM-compatible Layer 2 and Its Significance
Aleph Zero has traditionally been known for its Substrate-based WASM L1 blockchain, which launched in 2021, and its privacy-centric ethos. Now, going forward, the narrative around the L1 is set to change as it can now also act as the data availability layer for the L2 EVM layer, its applications, and L3 appchains. The expansion into Ethereum aims to enhance the accessibility of Aleph Zero's technology, offering greater flexibility for ecosystem developers and enabling the export of Aleph Zero's on-chain confidentiality features to the broader Ethereum community. Let’s dive into how Aleph Zero stands to benefit from EVM-compatibility and Arbitrum’s Orbit technology.
Why EVM Compatibility Matters
The Ethereum Virtual Machine (EVM) is the core computation engine of the Ethereum network. It’s at the heart of the Ethereum network and is where smart contracts are deployed and executed. It is also responsible for managing Ethereum’s vast memory and state. The EVM defines the rules of how the state of all accounts on the network can change from block to block. For a smart contract to work it must follow the rules of the EVM. Users interact with smart contracts by sending transactions that call specific functions of the contract.
The benefits of EVM compatibility are numerous, but the chief ones are interoperability and development efficiency. As the blockchain ecosystem grows, communication between different chains and access to their liquidity and features becomes more important. This interoperability allows new projects to reach a wider user base. For example, a token contract on EVM-compatible chains is basically the same, so bridging tokens from one chain to another is much simpler, and users have far more bridging options. Additionally, users can manage their tokens with the same wallet public key (address) across different EVM networks. Tools like Metamask allow users to have the same wallet address on all EVM networks, making switching between networks is as simple as clicking a button.
Developers can also use the same code with minimal changes to deploy on different chains. This reduces friction and enables other protocols to potentially tap into Ethereum’s industry-leading developer pool. The development landscape of the blockchain ecosystem shows Ethereum with around 2400 active developers in 2023, followed by Polkadot and Polygon with around 800 each, then Cosmos, Arbitrum, BNB, and Avalanche with 400-500 developers each. Most of these are EVM-compatible chains.
Having a large pool of active developers is key in today’s market. Not all developers on EVM-compatible chains write EVM code, but the number of developers on these chains shows the ecosystem is robust. Additionally, the EVM’s dominance in the blockchain space has led other chains to adopt its code, so you can run EVM code on their platforms. For example, Polkadot built on Substrate uses Substrate EVM to allow unmodified Solidity code to be deployed on its chain.
Good development requires tools, support and documentation, which tends to grow with the platform. Ethereum leads in this area, followed by other popular platforms like Solana. Solidity, the language of EVM, is relatively easy to learn as it’s similar to JavaScript, which is a language most developers are familiar with. Vyper, another language for EVM, is close to Python, another popular language. Languages like Haskell used for Plutus on Cardano have a steeper learning curve as they are complex and less known among developers.
Beyond the developer benefits, EVM compatible chains use the ERC20 token standard, so listing tokens on multiple exchanges, both DEX and CEX is much simpler. Centralized exchanges charge higher fees for listing non-ERC20 tokens if they list them at all. This compatibility saves costs for crypto projects that want to list their tokens on multiple platforms.
What is Arbitrum Orbit?
Arbitrum Orbit is a development framework crafted for the creation of alternative L2s and L3s. This design retains the security of L2s while exponentially boosting scalability as each layer enhances throughput further. The framework enables the Arbitrum DAO to grant intellectual property rights for L2 development while allowing the permissionless creation of L3s through the Orbit program. This dual approach benefits both Arbitrum and L3 developers, offering flexibility and control. The DAO can set terms and potentially restrict L2 competitors from using Arbitrum technology, creating a value accrual model for ARB token holders. L3s on Arbitrum pay fees to Arbitrum sequencers, ensuring economic benefits from the open-source code.
The Orbit framework supports the deployment of Ethereum Virtual Machine (EVM)-compatible applications using various programming languages, including C, C++, Rust, Solidity, and Vyper. This versatility attracts a diverse developer community, such as Aleph Zero. Additionally, by utilizing Arbitrum’s technology, Aleph Zero's EVM Layer 2 can provide a secure, scalable, and fast execution environment. It achieves up to 250 milliseconds block time with near-instant transaction finality and can process thousands of transactions per second, positioning it as one of the fastest EVM chains available.
A unique feature of Orbit chains is the "elastic block time" mechanism, which optimizes user experience and operational costs by adjusting block production rates based on network demand. During low activity periods, it halts block production to save resources and avoid unnecessary Ethereum settlement costs. During high activity, it can produce up to four blocks per second to maintain efficient transaction processing.
Layer 2 Testnet
Aleph Zero's ZK-privacy EVM Layer 2 is currently in Developer Testnet mode. The testnet presents an opportunity to integrate both existing and emerging use cases into the platform's infrastructure prior to mainnet launch. Aleph Zero's Developer Mainnet is set for release in the third quarter of 2024.
The Developer Testnet introduces a comprehensive suite of developer tools, including Gelato’s industry-standard web3 services such as Relayers, Account Abstraction, Functions, and Verifiable Random Functions (VRF). Additionally, it supports third-party infrastructure like oracles, block explorers, indexers, and multi-signature wallets. This extensive toolkit renders Aleph Zero’s new EVM Layer 2 a versatile and general-purpose platform.
Initial performance benchmarks indicate that Aleph Zero’s zkOS zero-knowledge proofs can be executed within 600-800 milliseconds on devices equipped with MacBooks (M1-M3 processors) and Intel Core i7-i9 PCs using standard web browsers like Safari or Chrome.
MOST Bridge Goes Live, Deepening the Ethereum Connection
Historically, Aleph Zero has been unique among blockchains for its lack of bridges and connectivity to other Layer 1 (L1) chains. This limitation has restricted its user experience and reach within the broader crypto space. However, the introduction of MOST changes this dynamic, providing a bridge to Ethereum’s extensive Total Value Locked (TVL), liquidity, and DeFi ecosystem.
The first major integration for the MOST bridge is with the Ethereum network. This strategic move is expected to stimulate the Aleph Zero ecosystem while offering Ethereum users access to Aleph Zero’s high-speed and privacy-centric capabilities. The launch of MOST aligns with Aleph Zero's broader strategy to enhance interconnectivity and modular solutions across different blockchain ecosystems.
MOST, as the frontend interface of Common, boasts a user-friendly design that serves as a gateway for users to transfer external liquidity and stablecoins to Aleph Zero. Here is a detailed breakdown of how to move assets from Ethereum to the Aleph Zero ecosystem using the MOST bridge:
- Access the MOST Interface: Navigate to the MOST interface on Common’s front end.
- Connect Your Wallet: Connect your Ethereum wallet to the MOST bridge.
- Select Assets to Bridge: Choose the assets you want to move to Aleph Zero.
- Initiate the Transfer: Follow the prompts to initiate the transfer, ensuring you approve the transaction in your Ethereum wallet.
- Confirm the Transaction: Wait for the transaction to be confirmed by the network guardians and finalized on the Aleph Zero blockchain.
zkOS and Its Early Adoption
Aleph Zero's innovative approach to integrating ZK-privacy into EVM and WASM-compatible networks positions it at the forefront of the blockchain privacy discussion. The testnet release and the strategic roadmap for zkOS highlight the future of on-chain privacy that the current crypto industry lacks. The zkOS is designed to unify all of the company's privacy products into an easy-to-use framework for developers. This platform allows for the integration of confidentiality features without needing extensive knowledge of cryptography. The goal is to make web3 on-chain privacy infrastructure more accessible, user-friendly, and economically advantageous.
Several projects have already committed to leveraging Aleph Zero’s zkOS technology to enhance their offerings and improve their privacy features. Holyheld is among the first to try the technology and enhance its card payments with advanced privacy features. DRKVRS, a unique action RPG game, is another to be built on the Aleph Zero EVM. This game employs zkOS to introduce privacy features, ensuring that players’ activities and data remain confidential while delivering an immersive gaming experience. Household name Rarible, a prominent NFT marketplace, is also integrating Aleph Zero EVM into its platform. This integration allows artists and creators using Aleph Zero to join Rarible’s extensive community, expanding their reach and opportunities within the NFT ecosystem. Finally, Common is developing an all-encompassing Private DeFi Suite that addresses custody, liquidity, and privacy issues in both centralized and decentralized exchange offerings. By expanding into the EVM ecosystem through Aleph Zero’s EVM, Common aims to provide a cost-effective and fast DeFi solution.
These diverse use cases underscore the versatility and potential of Aleph Zero and zkOS, highlighting their ability to enhance privacy, security, and functionality across various sectors within the blockchain space.
Conclusion
Aleph Zero's advancements represent a transformative leap in integrating robust privacy features on them EVM. The launch of the EVM-compatible Layer 2 and zkOS cement Aleph Zero as a leading force in the realm of blockchain privacy and scalability. As Aleph Zero continues to develop and refine its technologies, it is poised to significantly impact the blockchain landscape, offering developers and users unparalleled privacy, speed, and interoperability.
Disclaimer: This report was commissioned by the Aleph Zero Foundation. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Aleph Zero is blockchain infrastructure unique for its speed and scalability and ZK privacy features. While launched as a Substrate-based layer 1, it is now expanding to the EVM.
In June 2024, the Aleph Zero Foundation launched the testnet for its EVM-compatible, privacy-focused Layer 2 (L2) solution called Aleph Zero EVM. This L2 uses zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato’s rollup-as-a-service (RaaS) platform to introduce the first EVM-compatible privacy solution with subsecond ZK proving times. Along with this, the foundation released zkOS, a client-side, chain-agnostic ZK privacy system aiming to enhance the user experience when utilizing on-chain privacy solutions.
This report will detail Aleph Zero’s existing privacy solutions, the new EVM compatible Layer 2, zkOS, and more from Aleph Zero’s exciting Q2 2024.
A New EVM-compatible Layer 2 and zkOS Launch
In June 2024, the Aleph Zero Foundation launched the testnet for its own EVM-compatible, privacy-focused Layer 2 (L2) solution. The L2 utilizes zero-knowledge proofs, Arbitrum’s Orbit chain technology, and Gelato's rollup-as-a-service (RaaS) platform. This development marks the first EVM-compatible privacy solution capable of achieving subsecond ZK proving times.
In tandem with this release, the Aleph Zero Foundation also unveiled its long-term vision for zkOS, a client-side, chain-agnostic ZK privacy system. This initiative aims to elevate user experience with on-chain privacy through a system designed to support Privacy-as-a-Service (PaaS) via seamless application integrations on WebAssembly (WASM) and EVM-compatible networks.
The introduction of these technologies represents a pivotal sea change for Aleph Zero by becoming more interoperable with the EVM and heralding a privacy-focused product toward multichain expansion. By integrating zkOS, users can conduct private transactions and interact with decentralized applications (dApps) without compromising their data security, as zero-knowledge proofs are computed directly on their devices.
Aleph Zero Existing Privacy Solutions
Prior to these announcements, Aleph Zero was already a prominent figure in the blockchain privacy world. Current privacy solutions in the blockchain space are based on two main approaches: software-based zero-knowledge (ZK) proofs and hardware-based TEEs. Each has its pros and cons. ZK proofs allow one party (the prover) to prove that certain data is correct without revealing any information about the data itself–in another way, this allows users to use their personal data on-chain without revealing it at any time–or transact privately without disclosing the amounts held and transaction details.
Alternatively, TEEs achieve similar levels of privacy but require specific hardware called TEEs, Trusted Execution Environment. TEEs are widely used in smart phones, powering Secure Enclave in iPhones as an example, where data such as cards linked to Apple’s Wallet are held offline, in a closed environment. TEEs require vendor lockup, with Intel being the most widely used. There’s also some level of trust needed in the fact that TEEs are produced securely and blockchain networks using this technolgy for privacy require validators to run specific hardware.
Aleph Zero believes that the software-based approach is more scalable and safer in the long term.
The Landscape of zkOS and Aleph Zero
Aleph Zero’s zkOS consists of several components that achieve both EVM compatibility and privacy and are easy for individuals and builders to use.
zkOS
zkOS is the umbrella of all privacy features on Aleph Zero that are powered by Zero Knowledge technology. Based on Aleph Zero’s optimizations, it can generate ZK proofs in less than a second, according to the benchmarks. This advances the user experience of interacting with ZK-enabled apps that so far require intensive computing power and, as a consequence, significant amounts of time to generate the proofs.
zkToolkit
To ensure adoption of Aleph Zero’s privacy technology, zkOS will come with a set of developer tools that allow for easy integration of zkOS into existing and new applications. This solves one of the major hurdles in the ZK space which requires deep cryptographic knowledge to be able to integrate such privacy-preserving products. Among the tools, there are customizable plugins, persistent ZK identity that solves the compliance aspects of privacy technology, and others.
Aleph Zero EVM
Aleph Zero EVM is the new layer 2, standing out with its ZK privacy features that enable wider distribution of Aleph Zero’s technology, serving the Ethereum ecosystem users and builders. It allows for deploying Layer 3 chains on top of it, will use Aleph Zero Layer 1 as the Data Availability layer, and is powered by the same AZERO token as on Layer 1.
Aleph Zero WASM
Aleph Zero’s layer 1 is built using the Substrate framework, WASM smart contracts, and the ink! programming language. Thanks to its AlephBFT consensus and well-designed implementation, it maintains subsecond finality, high scalability, and 100% uptime.
Aleph Zero DA
Aleph Zero Data Availability (DA) layer leverages the layer 1 network’s low transaction and storage fees and high throughput to store the data for the EVM layer 2.
The New EVM-compatible Layer 2 and Its Significance
Aleph Zero has traditionally been known for its Substrate-based WASM L1 blockchain, which launched in 2021, and its privacy-centric ethos. Now, going forward, the narrative around the L1 is set to change as it can now also act as the data availability layer for the L2 EVM layer, its applications, and L3 appchains. The expansion into Ethereum aims to enhance the accessibility of Aleph Zero's technology, offering greater flexibility for ecosystem developers and enabling the export of Aleph Zero's on-chain confidentiality features to the broader Ethereum community. Let’s dive into how Aleph Zero stands to benefit from EVM-compatibility and Arbitrum’s Orbit technology.
Why EVM Compatibility Matters
The Ethereum Virtual Machine (EVM) is the core computation engine of the Ethereum network. It’s at the heart of the Ethereum network and is where smart contracts are deployed and executed. It is also responsible for managing Ethereum’s vast memory and state. The EVM defines the rules of how the state of all accounts on the network can change from block to block. For a smart contract to work it must follow the rules of the EVM. Users interact with smart contracts by sending transactions that call specific functions of the contract.
The benefits of EVM compatibility are numerous, but the chief ones are interoperability and development efficiency. As the blockchain ecosystem grows, communication between different chains and access to their liquidity and features becomes more important. This interoperability allows new projects to reach a wider user base. For example, a token contract on EVM-compatible chains is basically the same, so bridging tokens from one chain to another is much simpler, and users have far more bridging options. Additionally, users can manage their tokens with the same wallet public key (address) across different EVM networks. Tools like Metamask allow users to have the same wallet address on all EVM networks, making switching between networks is as simple as clicking a button.
Developers can also use the same code with minimal changes to deploy on different chains. This reduces friction and enables other protocols to potentially tap into Ethereum’s industry-leading developer pool. The development landscape of the blockchain ecosystem shows Ethereum with around 2400 active developers in 2023, followed by Polkadot and Polygon with around 800 each, then Cosmos, Arbitrum, BNB, and Avalanche with 400-500 developers each. Most of these are EVM-compatible chains.
Having a large pool of active developers is key in today’s market. Not all developers on EVM-compatible chains write EVM code, but the number of developers on these chains shows the ecosystem is robust. Additionally, the EVM’s dominance in the blockchain space has led other chains to adopt its code, so you can run EVM code on their platforms. For example, Polkadot built on Substrate uses Substrate EVM to allow unmodified Solidity code to be deployed on its chain.
Good development requires tools, support and documentation, which tends to grow with the platform. Ethereum leads in this area, followed by other popular platforms like Solana. Solidity, the language of EVM, is relatively easy to learn as it’s similar to JavaScript, which is a language most developers are familiar with. Vyper, another language for EVM, is close to Python, another popular language. Languages like Haskell used for Plutus on Cardano have a steeper learning curve as they are complex and less known among developers.
Beyond the developer benefits, EVM compatible chains use the ERC20 token standard, so listing tokens on multiple exchanges, both DEX and CEX is much simpler. Centralized exchanges charge higher fees for listing non-ERC20 tokens if they list them at all. This compatibility saves costs for crypto projects that want to list their tokens on multiple platforms.
What is Arbitrum Orbit?
Arbitrum Orbit is a development framework crafted for the creation of alternative L2s and L3s. This design retains the security of L2s while exponentially boosting scalability as each layer enhances throughput further. The framework enables the Arbitrum DAO to grant intellectual property rights for L2 development while allowing the permissionless creation of L3s through the Orbit program. This dual approach benefits both Arbitrum and L3 developers, offering flexibility and control. The DAO can set terms and potentially restrict L2 competitors from using Arbitrum technology, creating a value accrual model for ARB token holders. L3s on Arbitrum pay fees to Arbitrum sequencers, ensuring economic benefits from the open-source code.
The Orbit framework supports the deployment of Ethereum Virtual Machine (EVM)-compatible applications using various programming languages, including C, C++, Rust, Solidity, and Vyper. This versatility attracts a diverse developer community, such as Aleph Zero. Additionally, by utilizing Arbitrum’s technology, Aleph Zero's EVM Layer 2 can provide a secure, scalable, and fast execution environment. It achieves up to 250 milliseconds block time with near-instant transaction finality and can process thousands of transactions per second, positioning it as one of the fastest EVM chains available.
A unique feature of Orbit chains is the "elastic block time" mechanism, which optimizes user experience and operational costs by adjusting block production rates based on network demand. During low activity periods, it halts block production to save resources and avoid unnecessary Ethereum settlement costs. During high activity, it can produce up to four blocks per second to maintain efficient transaction processing.
Layer 2 Testnet
Aleph Zero's ZK-privacy EVM Layer 2 is currently in Developer Testnet mode. The testnet presents an opportunity to integrate both existing and emerging use cases into the platform's infrastructure prior to mainnet launch. Aleph Zero's Developer Mainnet is set for release in the third quarter of 2024.
The Developer Testnet introduces a comprehensive suite of developer tools, including Gelato’s industry-standard web3 services such as Relayers, Account Abstraction, Functions, and Verifiable Random Functions (VRF). Additionally, it supports third-party infrastructure like oracles, block explorers, indexers, and multi-signature wallets. This extensive toolkit renders Aleph Zero’s new EVM Layer 2 a versatile and general-purpose platform.
Initial performance benchmarks indicate that Aleph Zero’s zkOS zero-knowledge proofs can be executed within 600-800 milliseconds on devices equipped with MacBooks (M1-M3 processors) and Intel Core i7-i9 PCs using standard web browsers like Safari or Chrome.
MOST Bridge Goes Live, Deepening the Ethereum Connection
Historically, Aleph Zero has been unique among blockchains for its lack of bridges and connectivity to other Layer 1 (L1) chains. This limitation has restricted its user experience and reach within the broader crypto space. However, the introduction of MOST changes this dynamic, providing a bridge to Ethereum’s extensive Total Value Locked (TVL), liquidity, and DeFi ecosystem.
The first major integration for the MOST bridge is with the Ethereum network. This strategic move is expected to stimulate the Aleph Zero ecosystem while offering Ethereum users access to Aleph Zero’s high-speed and privacy-centric capabilities. The launch of MOST aligns with Aleph Zero's broader strategy to enhance interconnectivity and modular solutions across different blockchain ecosystems.
MOST, as the frontend interface of Common, boasts a user-friendly design that serves as a gateway for users to transfer external liquidity and stablecoins to Aleph Zero. Here is a detailed breakdown of how to move assets from Ethereum to the Aleph Zero ecosystem using the MOST bridge:
- Access the MOST Interface: Navigate to the MOST interface on Common’s front end.
- Connect Your Wallet: Connect your Ethereum wallet to the MOST bridge.
- Select Assets to Bridge: Choose the assets you want to move to Aleph Zero.
- Initiate the Transfer: Follow the prompts to initiate the transfer, ensuring you approve the transaction in your Ethereum wallet.
- Confirm the Transaction: Wait for the transaction to be confirmed by the network guardians and finalized on the Aleph Zero blockchain.
zkOS and Its Early Adoption
Aleph Zero's innovative approach to integrating ZK-privacy into EVM and WASM-compatible networks positions it at the forefront of the blockchain privacy discussion. The testnet release and the strategic roadmap for zkOS highlight the future of on-chain privacy that the current crypto industry lacks. The zkOS is designed to unify all of the company's privacy products into an easy-to-use framework for developers. This platform allows for the integration of confidentiality features without needing extensive knowledge of cryptography. The goal is to make web3 on-chain privacy infrastructure more accessible, user-friendly, and economically advantageous.
Several projects have already committed to leveraging Aleph Zero’s zkOS technology to enhance their offerings and improve their privacy features. Holyheld is among the first to try the technology and enhance its card payments with advanced privacy features. DRKVRS, a unique action RPG game, is another to be built on the Aleph Zero EVM. This game employs zkOS to introduce privacy features, ensuring that players’ activities and data remain confidential while delivering an immersive gaming experience. Household name Rarible, a prominent NFT marketplace, is also integrating Aleph Zero EVM into its platform. This integration allows artists and creators using Aleph Zero to join Rarible’s extensive community, expanding their reach and opportunities within the NFT ecosystem. Finally, Common is developing an all-encompassing Private DeFi Suite that addresses custody, liquidity, and privacy issues in both centralized and decentralized exchange offerings. By expanding into the EVM ecosystem through Aleph Zero’s EVM, Common aims to provide a cost-effective and fast DeFi solution.
These diverse use cases underscore the versatility and potential of Aleph Zero and zkOS, highlighting their ability to enhance privacy, security, and functionality across various sectors within the blockchain space.
Conclusion
Aleph Zero's advancements represent a transformative leap in integrating robust privacy features on them EVM. The launch of the EVM-compatible Layer 2 and zkOS cement Aleph Zero as a leading force in the realm of blockchain privacy and scalability. As Aleph Zero continues to develop and refine its technologies, it is poised to significantly impact the blockchain landscape, offering developers and users unparalleled privacy, speed, and interoperability.
Disclaimer: This report was commissioned by the Aleph Zero Foundation. This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
