The relationship between Aleo and ZK Rollups, and the existing drawbacks.

The difference between Aleo and ZK Rollups

One might argue why we need a separate zero-knowledge layer-1 network when there are already multiple Ethereum-compatible zero-knowledge rollups. Well, there are many reasons.

1. Independent from other chains

ZK rollups rely on underlying chains such as Ethereum to ensure security and finality. Instead, Aleo is an independent chain with better control over its security and privacy.

‍2. Privacy-first design

Ethereum was not designed for privacy or to be compatible with zero-knowledge proofs. Therefore, when ZK rollups publish their transactions on Ethereum, the transaction details will be shared on the network.

Aleo solves this problem because it is compatible with ZKP. This means that proofs of validity submitted on-chain do not share any private details related to the user or network transactions.

3. Easy to program

Aleo defines a new programming language, Leo, which abstracts the complexity of ZKP and allows developers to easily write private applications supported by ZK. In contrast, ZK rollups typically require existing contracts on Ethereum to adapt to the ZK environment.

Aleo use cases

‍Based on everything we’ve discussed so far, Aleo has two of its most prominent features: privacy and unlimited computing.

This means developers can build any type of application on Aleo, no matter how much computing power is required. In doing so, they can also keep interactions within the app completely private. While the possibilities with Aleo are endless, here are some common use cases where Aleo is best suited:

1. Machine learning model

Machine learning (ML) relies heavily on data. This data comes from users and devices, compromising the security of both. Users have no way of confirming that their data has not been compromised or misused.

The ML models supported by ZK change this. With the help of ZKP, developers can run ML models that can prove the validity of calculations without leaking any data. This alone can help us in every aspect of online interactions using artificial intelligence and machine learning.

For example, this could help assign a credit score to a user without revealing any financial records online. This creates an efficient and reliable decentralized lending market.

2. Private Identity and Verification

Identity and its verification are an important part of the Internet. Aleo applications can leverage ZKP to create identities so users can verify their identity without revealing any information. Or, they can choose the specific details they want to disclose.

3. Financial services

In traditional finance, a central entity has ultimate control over our financial transactions. In contrast, DeFi provides users with control over their assets and transactions, but it publishes all transaction records in a public ledger.

Aleo solves this problem. Financial services applications on Aleo can perform the same tasks as regular DeFi applications without revealing any private information about the transaction, such as the transacting party, the transaction amount, or the platform used.

These are just some of the use cases for Aleo. In general, developers can use Aleo to build any type of application we use today. The unique thing about building applications on Aleo is that all applications are private by default.

Disadvantages of Aleo

‍While Aleo is a bold attempt to solve Internet privacy issues, it has its own challenges and shortcomings. Let’s look at some of the big issues with Aleo.

Slow proof generation

Proof generation on Aleo is a computationally intensive process, and generating a validity proof for any transaction takes a significant amount of time. This tends to slow down the network.

To solve this problem, applications such as Leo Wallet are using technologies such as browser-based GPU acceleration. This way, they can speed up proof generation while still maintaining user privacy.

new programming language

Aleo requires developers to build using a new ZK-compatible programming language called Leo. While Leo abstracts low-level cryptography from the application development process, it also means developers need to adapt to a new language.

Additionally, since Leo is a new language, its documentation is still not very rich compared to other more popular languages ​​like Solidity.