What Is aelf (ELF)?
ELF is the native token of aelf, which is a Layer-1 blockchain based on cloud computing technology. It employs a parallel-execution system and has built-in cross-chain functions. If you want to see the current (or previous) ELF price, check out the aelf price chart above.
The aelf blockchain is constructed based on the parent-child chain principle. It has one main (parent) chain and multiple sidechains (child chains). This enables businesses to create decentralized applications (dApps) on the sidechains of aelf with the possibility of cross-chain communication and collaboration. Besides, businesses can also create their own blockchains with custom settings and features.
In order to provide developers with advanced dApp creation, aelf offers an integrated development environment (IDE), which is a collection of fundamental tools for creating and testing software.
Apart from that, developers can choose from a variety of governance models for their dApps including a Referendum governance model, an Association governance model, a Parliament governance model, or simply a custom one.
Besides, there are other types of tokens that run on the aelf network apart from ELF tokens. This includes resource tokens, VOTE tokens, SHARE tokens, and tokens created by developers.
Resource tokens are required to pay for the resources consumed by aelf’s chains or dApps. Therefore, there are CPU, RAM, DISK, NET, READ, WRITE, STORAGE, and TRAFFIC tokens.
VOTE tokens are used for choosing block validators on the aelf’s consensus mechanism. SHARE tokens are used for obtaining sidechain dividends.
Now, talking about tokens created by developers, it’s pretty self-explanatory what kind of tokens these are.
The Developer of aelf
Ma Haobo developed the aelf crypto project in 2017. Haobo has a degree in software engineering. Apart from founding aelf, he also co-founded GemPay and Hoopox. Besides that, he is a member of the Blockchain Experts’ Commission of the Chinese Institute of Electronics.
How Does aelf Function?
The aelf network employs the Delegated Proof-of-Stake (DPoS) consensus algorithm. DPoS essentially is an enhancement of the original Proof-of-Stake consensus algorithm. The main difference is that DPoS allows users to choose their representatives for block creation.
These representatives are referred to as delegates. They must guarantee that transactions are confirmed without error. For confirming transactions and creating new blocks, delegates are rewarded with block rewards. In order to distribute these rewards, aelf utilizes a dividend pool. The pool is composed of block rewards, transaction fees, and resource token transaction fees.
The Purpose of ELF Tokens
ELF tokens are the driving force of the aelf network. The following are the main use cases of aelf tokens:
- Governance token. By staking ELF tokens users can become nodes and participate in the governance process of the aelf network.
- Payment token. ELF tokens are used to pay sidechain index fees, as well as transaction fees.
- Resource token. ELF tokens are used to buy resource tokens.
- Reward tokens. ELF tokens are used as block rewards for delegates.
Besides, don't forget to take a look at the above-placed aelf price chart since it displays the live ELF price.
Tokenomics of ELF
The max supply of aelf tokens is 1 billion. A private sale, held in December 2017, was the only way of acquiring ELF tokens after they were launched. 25% of the total supply was dedicated to that sale. Another 25% was set aside for the aelf Foundation with a 3-year lock-up period. The remaining portion was dedicated to the aelf team, advisors, partners, and marketing purposes.
Just keep in mind that the ELF price tends to swing a little. This is important to understand if you're planning to buy aelf tokens. If you want to see the main patterns of the aelf price swings, take a look at the aforementioned price chart.
