Aelf (ELF) is a fascinating project that is currently grabbing a lot of attention. It aims to develop a new operating system exclusively for blockchains, and it does so by creating a decentralized and self-evolving cloud computing blockchain network.
In July, Aelf moved into its test net phase, where the project demonstrated some positive improvements in the protocol. Despite this, the question remains whether Aelf can stand out and cut above its competitors.
Aelf is primarily focused on two innovations to solve the problems that existing blockchain technology is facing. Firstly, it aims to solve the scalability issue by creating and using side chains. Secondly, it aims to develop a new and unique governance system.
Aelf plans to segregate smart contracts and other resources by using side chains. The side chains are dedicated to specific smart contracts, and they cannot interact with each other. Instead, they communicate through the main chain, which is the backbone of the entire network, and it is also able to interact with each side chain.
To pay a transaction fee to the main chain for indexing, side chains will use the ELF token. The fee structure is structured in such a way that side chains pay smaller transaction fees as their contribution to the network grows. Side chains can also charge fees to their sub-chains.
A traditional Proof of Work or Proof of Stake consensus method cannot be used by Aelf because it needs to record information from a variety of side chains as well as the main chain. Instead, the Aelf network uses a Delegated Proof of Stake consensus mechanism.
Aelf token holders can vote on which nodes will become the mining nodes. Then, the mining nodes determine how to distribute mining bonuses to all the other nodes and stakeholders.
Prediction of ELF Coin Price
At the press time, the ELF coin is declining after making a high of $1.665 in December, last year. When the coin broke the $1 mark, the bullish investors exited after booking profit.
The current situation suggests a consolidation trend between the support level of $0.485 and the resistance level of $0.697. The 2nd support and resistances on the other hand are at $0.375 and $0.9543 respectively. The target as per the current analysis is neutral.
Conclusion
Aelf uses side chains to segregate smart contracts and resources. The main chain acts as the backbone of the network. To record information from various side chains, Aelf uses Delegated Proof of Stake. ELF coin is currently in a neutral target after declining from a high of $1.665 in December last year.
Technical Levels
- Support Levels: $0.484 and $0.375
- Resistance Levels: $0.697 and $0.954
