Aleo Systems, a cryptocurrency startup, has raised $200 million in a recent funding round to launch its private programmable blockchain network called Aleo. The funding round was jointly led by SoftBank and Kora Management and saw participation from venture capitalists Andreessen Horowitz, Tiger Global, Samsung Ventures, and others.
Aleo’s technology is focused on privacy and differs significantly from the popular programmable blockchains of decentralized finance, such as Ethereum, which is built with openness in mind. This makes Aleo’s success far from guaranteed, even in the current market.
The timing of Aleo’s launch is interesting, given the recent privacy concerns in the DeFi market. Nevertheless, Aleo supporters believe that there is a demand for scalable privacy networks. According to COO Alex Pruden, Aleo plans to promote DeFi’s privacy-focused programmability. The platform uses zero-disclosure proof (ZKP), the same privacy technology that underpins Zcash, to authenticate a cryptotransaction without sharing its details, allowing users to keep their money matters private.
Aleo’s ZKP has evolved into “zero-disclosure execution” or Zexe, which is compatible with smart contracts. Users can perform off-network transactions that are combined with cryptographic proofs on the network, promising greater scalability, efficiency, and privacy than doing everything online.
Aleo smart contracts will not be compatible with the Ethereum virtual machine, and a new smart contract programming language called “Leo” will take the place of Solidity, the language of Ethereum developers.
According to Pruden, Aleo Systems is poised to play a significant role in the development of the eponymous blockchain, acting as caretaker, core developer, and promoter of the network. The company plans to build a profitable business on the open-source blockchain eventually. Although it hasn’t committed to decentralizing Aleo’s management, it hasn’t ruled it out either.
The $200 million funding will help Aleo Systems create products and services based on the Aleo network, according to Pruden.
What is Aleo?
Aleo is a private programmable blockchain network that is focused on privacy. It utilizes zero-disclosure proof (ZKP) technology to authenticate transactions without sharing their details, allowing users to keep their financial matters private.
Who funded Aleo’s recent funding round?
Aleo raised $200 million in a Series B funding round, which was led by SoftBank and Kora Management. Other investors included venture capitalists Andreessen Horowitz, Tiger Global, and Samsung Ventures.
How does Aleo’s technology differ from other programmable blockchains?
Aleo’s technology is focused on privacy, which sets it apart from other popular programmable blockchains like Ethereum. While Ethereum is known for its built-in openness, Aleo’s privacy-focused technology allows for greater scalability, efficiency, and privacy.
What is Zexe?
Zexe is an evolution of Aleo’s zero-disclosure proof (ZKP) technology that is friendly to smart contracts. It allows users to perform off-network transactions that are combined with cryptographic proofs on the network, promising greater scalability, efficiency, and privacy than doing everything online.
Will Aleo’s smart contracts be compatible with Ethereum’s virtual machine?
No, Aleo’s smart contracts will not be compatible with Ethereum’s virtual machine. A new smart contract programming language called “Leo” takes the place of Solidity, the language of Ethereum developers.
Is Aleo planning to decentralize its management?
Aleo Systems hasn’t committed to decentralizing its management, but it hasn’t ruled it out either.
What is Aleo’s vision for the future?
According to COO Alex Pruden, Aleo Systems is poised to play a huge role in the development of the eponymous blockchain. The company plans to eventually build a profitable business on the open-source blockchain and believes that regulators, consumers, and businesses could benefit from the privacy-focused system Aleo plans to deploy.