Aleph Zero (AZERO)

Overview

Aleph Zero is an independent layer-1 blockchain built for payments, smart contracts, and other applications that share a common record of activity. Its native coin, AZERO, pays network fees and helps secure the chain through staking. The project places particular emphasis on fast transaction finality: the point at which a confirmed transaction becomes part of the chain’s agreed history. (docs.alephzero.org)

What sets the network apart

Aleph Zero uses a consensus system called AlephBFT. It combines proof of stake with a directed acyclic graph, or DAG, that helps validators agree on the order of information before blocks are finalized. The final record remains a blockchain. Developers can also build applications using smart contracts on its layer-1 network. (docs.alephzero.org)

The project has changed direction over time. An Ethereum-compatible layer 2 launched in 2024, but the team announced its sunset in 2025. Aleph Zero’s continuing network is its original layer 1, with later plans focused on that chain and community-led governance. (alephzero.org)

History & Team

Aleph Zero began in 2018. Its early leadership included co-founders Matthew Niemerg, Antoni Zolciak, Adam Gagol, and Michał Świętek, whose backgrounds spanned mathematics, software, and business development. The Aleph Zero Foundation, based in Zug, Switzerland, oversaw protocol development and issued AZERO. Cardinal Cryptography was a core research and development partner. (assets.alephzero.org)

The mainnet launched in November 2021, initially supporting coin transfers. Smart contracts arrived on mainnet in March 2023. The project funded its early work through private rounds, community contributions, and public token sales. Its mainnet announcement named backers including Jun Capital, Genblock Capital, Supernova, and PetRock Capital. (alephzero.org)

A major shift followed in 2025. The Foundation announced plans to wind down and move toward a Swiss association designed to support a community-led DAO, or decentralized autonomous organization. Cardinal Cryptography stepped away as the main chain maintainer. In a November 2025 update, the Foundation said the essential components needed to maintain the layer-1 mainnet had been handed over, while work on the proposed governance structure continued. (alephzero.org)

Technology & How It Works

Reaching agreement with AlephBFT

A blockchain needs its operators to agree on which transactions happened and in what order. Aleph Zero’s operators, called validators, take part in that process. Its proof-of-stake model selects validators using staked AZERO, while AlephBFT helps a rotating group of them reach agreement and finalize blocks. The DAG is an intermediate structure used during consensus, rather than the format of the finished chain. (docs.alephzero.org)

AlephBFT is designed to keep working when messages arrive at different times or some participants behave incorrectly. The underlying research was peer-reviewed and presented at the Advances in Financial Technologies conference in 2019. A 2025 network update added public reporting of validator performance, giving participants more information about how validators contribute to finalization. (docs.alephzero.org)

Smart contracts and privacy

Aleph Zero was built with Substrate, a framework for creating blockchains. Its layer-1 smart contracts use ink!, a language based on Rust. These contracts can manage tokens, run application rules, and automate actions when stated conditions are met. For example, an app can use a contract to issue a digital collectible or record a name tied to a blockchain address. (docs.alephzero.org)

Privacy has also been a research focus. Aleph Zero developed zero-knowledge tools that let a system check certain facts without revealing all the underlying data. Its zkOS and Shielder work explored ways to shield token activity, including on the former EVM layer. Following that layer’s sunset, the 2025 roadmap described a privacy pool on the layer 1 as a longer-term goal. The layer-1 contracts and that proposed pool are distinct parts of the project’s development. (alephzero.org)

Tokenomics & Utility

AZERO is the coin used for fees on Aleph Zero’s layer 1. A user needs it to send a transaction or interact with a smart contract. It also gives holders a way to participate in network security: validators stake coins while operating nodes, and nominators stake coins to support validators they select. Both roles can receive staking rewards under the network’s rules. (docs.alephzero.org)

The network began with an initial allocation of 300 million AZERO. Its early distribution included pre-seed and seed contributors, an early community round, a public presale, and a public sale. Those groups had different release schedules, which determined when their coins became available. (alephzero.org)

The coin’s issuance rules changed after a community vote in 2024. The adopted model sets a maximum supply of 520 million AZERO and reduces the number of newly issued coins over time. It took effect on October 14, 2024. Under the model, 90% of new issuance goes toward staking rewards and 10% goes to an ecosystem fund. That means issuance supports both the people securing the chain and work intended to develop it. (docs.alephzero.org)

Ecosystem & Use Cases

Applications on the layer 1

Aleph Zero supports applications for decentralized finance, digital identity, and collectibles. AZERO.ID uses smart contracts for blockchain-based names. ArtZero has built an NFT marketplace on Aleph Zero, while Ike introduced liquid staking: a way to stake AZERO while receiving a token that can be used in other on-chain activities. These examples show different uses of the same underlying contract network. (use.ink)

The chain has also been used beyond consumer crypto apps. In 2024, Bank Pekao, Aleph Zero, and Degen House announced Archiv3, a project that tokenized digital reproductions of Polish artworks on the layer 1. In this case, tokens served as records linked to cultural works, while the reproductions were preserved through a separate archive. (alephzero.org)

A changing ecosystem

The project previously expanded through an EVM-compatible layer 2, which supported Ethereum-style applications and privacy experiments. Its sunset changed the setting for apps built there. The Foundation set August 31, 2025, as the final date for users to withdraw funds and migrate assets from that layer. Aleph Zero’s subsequent roadmap centered on layer-1 development rather than continued EVM-layer support. (alephzero.org)

Advantages & Challenges

Aleph Zero’s design offers a distinct mix of features. AlephBFT provides a peer-reviewed approach to finalizing transactions, staking allows coin holders to support validators, and layer-1 smart contracts give developers a place to build apps. Projects such as AZERO.ID, Ike, and Archiv3 demonstrate uses ranging from identity and finance to cultural preservation. (docs.alephzero.org)

The main challenges are tied to the project’s transition. Closing the EVM layer reduced the range of environments available to its developers. The shift away from Cardinal Cryptography as primary maintainer created a need for new developers to carry out upgrades. In November 2025, the Foundation said it had identified possible development teams, while the DAO transition remained in progress. How those efforts advance will shape the chain’s next stage. (alephzero.org)

Where to Buy & Wallets

AZERO is available on exchanges including KuCoin. Aleph Zero’s exchange documentation also lists MEXC, Gate, and HTX among platforms that have offered the coin. Exchange access and supported services vary by location. (kucoin.com)

For holding and using native AZERO, the project provides a web wallet at azero.dev and an Aleph Zero Signer browser extension. Third-party wallets listed in its documentation include Nova Wallet, SubWallet, and Talisman. Users who intend to stake or use layer-1 apps need a wallet and account that support the Aleph Zero network. (docs.alephzero.org)

Regulatory & Compliance

Aleph Zero’s issuer, the Aleph Zero Foundation, is based in Switzerland. Swiss financial-market guidance looks at a crypto asset’s economic function when assessing how rules apply; payment, utility, and asset functions can receive different treatment. In the European Union, the Markets in Crypto-Assets framework sets authorization requirements for businesses providing covered crypto-asset services. These rules concern the activities of issuers and service providers as well as the ways people access a token. (alephzero.org)

Aleph Zero announced in November 2024 that it had received Sharia compliance certification from the Shariyah Review Bureau. The project described the certification as covering its operations, products, and finances. It gives Muslim users a stated basis for considering the project in relation to Islamic finance principles. Applications built by separate teams can have their own financial designs and uses. (alephzero.org)

Future Outlook

Aleph Zero’s published roadmap points toward a more community-led layer 1. It proposes a Swiss association to provide an organizational home for a DAO, alongside upgrades to the chain’s smart-contract technology. One proposed upgrade would support RISC-V execution for contracts, replacing the current approach as part of future development. The roadmap also explores new bridges and identifies a native limit-order-book exchange and privacy pool as longer-term goals. (alephzero.org)

The November 2025 update described the mainnet handover as complete but said work on the DAO structure and development arrangements was still underway. Aleph Zero’s next chapter therefore rests on maintaining the existing chain and turning its layer-1 plans into working features. (alephzero.org)

Summary

Aleph Zero is a proof-of-stake blockchain whose AZERO coin pays fees and helps secure the network. Its AlephBFT consensus, smart-contract support, and applications give it a place among layer-1 platforms. After ending its EVM layer, the project’s focus shifted to maintaining and developing the original chain under a more community-led model. (docs.alephzero.org)