How Aleo Works
Our novel consensus algorithm bakes zero-knowledge proofs into the blockchain, enabling faster, cheaper, and safer applications for a better web.
Stakers
Stakers lock up Aleo Tokens to help validators participate in consensus and secure the network. They earn rewards on their staked Tokens.
Learn more about staking
Provers
Provers use specialized hardware to generate proofs and solve puzzles to earn Aleo Credit rewards.
Become a prover
Validators
Validators run nodes, validate transactions, and participate in consensus to add new blocks. They earn fees and rewards.
Become a validator
Together, all stakeholders create a mutually beneficial ecosystem
- 01
Stakers stake Aleo Tokens to validators. Validators need 10 million Aleo Tokens staked with them to begin.
- 02
Next, validators can validate transactions on the decentralized open-source network by verifying zero-knowledge proofs.
- 03
Provers generate proofs and solve puzzles, which validators verify and include in blocks. The provers and validators do this to earn rewards from the open-source network.
- 04
Validators participate in the Aleo Network’s consensus mechanism.
Introducing AleoBFT Consensus
AleoBFT is a novel consensus algorithm tailor-made for Aleo and based on Bullshark/Narwhal.
One distinguishing feature is a Coinbase puzzle based on the earlier Proof-of-Succinct Work model. Provers solve on a per-block basis in exchange for a dedicated share of the block reward.
The Coinbase puzzle mirrors the process for generating a SNARK proof as a transaction on the network. It's useful in that it has carryover beyond the consensus algorithm itself.
Cost-effective
Users can package information off-chain and upload it as a less data-heavy proof, greatly reducing the network (or “gas”) fees necessary to participate on the Aleo Network.
Secure
Users get the proven security of Proof of Stake models, plus the ability to reduce how much sensitive data they share by packaging them into zero-knowledge proofs.
Participatory economics
Users are incentivized with Aleo Tokens to contribute to the network’s security by staking Tokens, generating proofs, and validating transactions.
