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DPRating (aelf) : Investable Bb class, low risk, benign in the medium and long term, multi-level side chain as the core assets, strong market liquidity as a support.

DPRating (aelf) : Investable Bb class, low risk, benign in the medium and long term, multi-level side chain as the core assets, strong market liquidity as a support.

Project summary:

Through clustering, resource isolation, and governance structure optimization, Ælf defines a minimally feasible block and a highly customizable OS for creating a smart contract set for each chain in a multi-level sidechain, reducing data complexity in different scenarios. The vision is to become the Linux of the blockchain industry.

invest ability rating: Bb

Based on the current progress of the project and various types of data, we give Ælf the current investment rating is Bb.

The founder of the team has accumulated rich experience and technology precipitation in the industry. However, the project has a large vision and faces great difficulty and uncertainty in the process of promotion. The resource isolation mechanism is not uncommon in competing products. The realization of the mid-chain dynamic index and the extension of the Merkle tree side chain will be the key point of focus and attention of investors.

After the test network was released on June 30. 2018, the official plan for the next phase was to perform a product update every month and complete a phase of functional delivery update in three months to achieve the main net online in 2019 Q1. Need to be reminded that the current project has not yet launched an attractive program on the stimulus of developer participation.

Ælf has been launched on mainstream exchanges including Binance and South Korea’s Bithumb. It has good liquidity support. The market value of circulation is between 60 and 70. The overall performance slightly outperforms the market index. The highest price of historical currency is $2.59. The highest price fell by-71.52%.

Risk rating: low

Based on the current disclosure information of the project, the risk of Ælf is low.

Combined with the token distribution plan, the private placement accounted for 25%, no lock-up period; the foundation holdings accounted for 25%, locked for 3 years; the team consultant partners held part of the lock for two years, and released every six months. The lock-up period of the circulation plate released to the market is reasonable, and the project execution team has certain restrictions according to the road map.

According to the company’s data, the project company’s main body is well-matched with the Ælf team members. The members’ disclosure information is clear and can be verified in various channels with high transparency.

The main risk of the project will come from the difficulty of development itself. Although the market PR activities, the establishment of cooperative relations, and the promotion of technology research and development have been carried out steadily since the establishment of the project, the ecological construction is relatively weak, and it still faces a severe test in the subsequent public chain competition.

I. Fundamentals of the project (35%)

The core of Ælf is the Ælf system and the Ælf operating system. The Ælf system is implemented by high-performance solution, resource isolation, representative governance structure, functional classification of nodes, running on the cluster to provide standard services, and through parallel processing. The vision is to increase efficiency with the addition of more sidechains; the Ælf operating system provides the underlying modules, components, interfaces.

Comment:

1 Ælf divides different resources for different smart contracts, shields each other’s interference, realizes resource isolation, and balances different business scenario requirements (such as A needs higher TPS, B needs security, C needs both).

2 Due to network bottlenecks, congestion, transaction waiting and other factors, serial processing has limits, the performance of a single node / mining machine often restricts the performance of the entire system; Ælf uses parallel processing and cluster environment solutions, the goal is to achieve performance improvements.

In summary, Ælf falls on the “comprehensive public chain” track and forms direct competition with various underlying public chains in technology and solutions, especially the template and infrastructure parts. Most of the public chains claim to lower the developer threshold. Providing the most complete and best facilities, each of which is also engaged in ecological construction and technical bottleneck breakthroughs. Halfway through the 2018, in the competitive landscape of the public chain, customizable basic modules and components have become the basic standard of the public chain rather than innovation. There are many pioneers in this field. The moat of Ælf is the performance improvement plan of its cluster and the perfect resource isolation mechanism. In terms of ecological construction, it has not yet shown outstanding advantages, and it is waiting for Q3 to exert its strength.

Features: one chain and one contract, side chain dynamic index, tree side chain extension

Different from single-chain system, adopting a main chain and multiple side chain modes, the main chain serves as the cornerstone of the whole system, including the token system and DPoS consensus mechanism and becomes the backbone index. The main chain and multi-level side chains face different businesses. The scene realizes “one chain one contract, side chain dynamic index, tree side chain extension”.

The overview of architecture

Side chain interaction and economic system, the chain indexed by the Ælf main chain is a side chain.When message authentication is required between the side chains, it is necessary to include the main block block header information, which is completed by the Merkle Tree Root provided by the main chain. When verifying information from another side chain, it must contain the main block information of the Ælf main chain, and the verification is done by the Merkle Tree Root provided by the main chain.

Built-in side chains provide templates and infrastructure

Developed under the guidance of the Foundation, providing the development of sidechain templates and infrastructure and communication, including the following scenarios, using a hierarchical side chain mechanism and cross-layer guarantee mechanism as a solution to optimize the speed of cross-chain transactions.

A. Information registration certification

B. Digital assets for sale

C. Decentralized transaction

D. Cross-chain optimization

Innovate

Side chain concept since 2014, from the initial simple side chain asset anchored to the “chain of application of main chain -” independent structure, although difficult to have a big innovation on direction, but on the details and implementation, balance have different requirements for safety and efficiency. Side-chain dynamic indexing and indexing timing provide flexibility, as stated in the white paper below.

Since the concept of sidechain has been proposed in 2014, from the initial simple main side chain asset anchoring to the “main chain-application chain” independent structure, although it is difficult to make big innovations in the general direction, in terms of details and implementation, balance have different requirements for safety and efficiency.Side-chain dynamic indexing and indexing timing provide flexibility, as stated in the white paper below:

Comment:

Ælf proposes different indexing strategies for each chain based on its own characteristics, instead of treating them equally, with bifurcate risk of side chain, evil side chain, side chains that lack maintenance contribution to the system are gradually eliminated, and high-quality side chains are more flexible resources and support, saving the main chain resources and performance while matching the rules of “sidechain competition”.

In terms of performance improvement solutions, Ælf places requirements on the professionalism of the nodes.However, the high threshold of nodes often leads to a lack of decentralization of a blockchain system; therefore, a reasonable governance mechanism is needed to balance efficiency and fairness.The Ælf system emphasizes the mechanism of competition and similar elimination, and is associated with its governance mechanism and system rules. The primary condition of the appointed node is to complete its own responsibilities and ensure the stable operation and health of the system, otherwise it will not be accepted by the whole system.

As you can see, in addition to the competition, each part in ecological also maintained a strong relationship and cooperation, such as storage chain, IM chain, capital chain, chain applications between two combination and the relationship between the richer and communication resources and value. In such an environment, each side chain must play its own characteristics in the dimension to spark, while directly competing with the same field side chain. “Cooperation + survival of the fittest” will eventually promote a spiral of ecological growth within the system.Overall, the project’s system design is closely related to the blockchain genes.

2.Fundamentals of the team (40%)

Team member:

Project consultant

Project consultants include FBG’s Zhou Shuoji, Alphabit’s founder and CEO, Chartered Financial Analyst Liam Robertson, Dacheng Law Firm’s senior partner TENX, KyberNetwork’s consultant Kenneth Oh and American technology blog TechCrunch’s founder J.Michel Arrington; the organization includes leading institutions such as FBG and ALPHABIT.

Comments:

According to LinkedIn information, the team is now stable to 30+, including multiple overseas PRs. The core members of the founding team are experienced in the technology and entrepreneurial team. The company’s main body, Beijing Haobo Information Technology Co., Ltd., was previously the HNA Eco-Tech Group. The third-party payment platform of the chain, Lifangtong, provides services and cooperates with Suzhou Tongji Financial Technology Research Institute to complete the RMB 28 million Pre-A round of financing, with a post-investment valuation of 136 million. The investors include Huachuang Capital and Dapper Dragon, TaoShi Capital, Weihui Finance, Danhua Capital, and Xintian Venture Capital

3. Community (20%) :

Google:

The average Google search index is around 55, peaking between December 2017 and March 2018.

Wechat:

The WeChat index has not fluctuated in the past three months. It has peaked since the beginning of July and reached 42,840 on July 3, 2017.

PR activity:

Fourth, the adjustment items: -10% ~ 10%

Currently value:

Between June 5, 2018 and July 4, 2018, the price ranged from $1.03 to $0.7243, with a minimum/maximum price of $0.4704 and $1.07, respectively.

Its market capitalization ranged from $25.7 million to $18.1 million, with a minimum/maximum of $11.76 million and $26.67 million, a median of $17.09 million, and a seven-day moving average of $18.95 million.

Trading volume varied between 7.98 $ MM and $ 51.63 MM, a median of $ 15.52 MM and a 7-day moving average of $ 45.54 MM.

There are currently 18 online exchanges, including Binance, Huobi, OKEx, Gate.io, KuCoin, and the Korea Exchange Bithumb. The liquidity is well supported.

Investigation of the agreement of performance

The announced roadmap is as follows:

The test network was released to realize multi-node P2P communication, DPoS consensus, smart contract, parallel operation, and cluster basic functions. According to the weekly progress report, the team has started the following work since the first quarter of 2018:

Candy self-developing system;

Collaborate on resource sharing or technical support with a number of segmented (content-based) projects.

Overall, the development of technology is centered on the development of the asset chain and the main chain. The Candy candy system is not in the original road map planning.

Code audit

In the latest issue of code audit data, elf scored 4 stars, the most active two code bases are “Aelf” and “AElfWebsite-Angular”, The number of commits was 504, and the updated version of devV1.0 was released in May. The RPC and node command line options were updated to optimize the processing of parallel errors and the network environment, enabling registration, deployment, and call logic for smart contracts. The iteration rate is 1.04 and the number of developers is 9.

Investable quantitative score

Good scroe, The information transparency is clear, the design and resume are real, the project completion degree is high, the risk is low

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