In order to participate in the most recent Publish0x competition in partnership with the Aelf project, I decided to read the whitepaper and research about the project and I found it very interesting and peculiar, in this study I intend to explain what the AELF project is, do a technical analysis of the coin that runs on the blockchain and my personal view of the project.

What is the Aelf

A very innovative proposal and the team and their advisors have participated in countless blockchain-based projects in the past and are able to see some industries as the first to adopt this idea: financial services, which is very clear to all of us, insurance, digital identity and IPs , smart cities and the internet of things.

AELF will actively identify new business opportunities and dApps to be part of the system. Below are some of the things already planned to be done.

• Interoperate with existing dApps in other chains.
• Create new ideas for Startups.
• Educate and transform established companies to be prepared for the blockchain culture.

The idea is that they are a third generation blockchain technology and they have been striving to tackle weaknesses already found in the current network: performance, resource segregation and governance structure.

Traditional blockchains problem

According to the whitepaper, the developers of the aelf project understand that blockchain was a paradigm break in the modern world, but its application in the modern world is restricted by a barrier that is about to be broken. According to them, the barriers that need to be broken to meet business needs are:

1. Current Blockchains are not scalable, as the performance of a single node/mining machine determines the performance of the entire system.
2. The current Blockchains do not separate resources for different Smart Contracts, which causes interference in the execution of Smart Contracts.
3. Blockchains do not have a pre-defined Consensus Protocol to adopt updates or adapt to a new technology.

They also mention that the world industry when trying to migrate from the traditional system to the blockchain system faces numerous difficulties because they are not capable or efficient enough to work as a versatile operating system and still support the various complex applications of the commercial scenario. They give the example of issuing tickets where there is a need for speed over security and the blockchain bureaucracy makes this process slow and unwanted for this commercial area. There is also the big issue facing bitcoin at the height of its price and usability in 2017: performance and the ability to make transactions that is compromised when it comes to large-scale information.

It is pointed out that blockchain despite exponential adoption is still in an initial state, since the new methods of updating them are in deficit and there is a constant inflation of the blocks which, in turn, will increase maintenance costs.

The wide variety of stakeholders within the ecosystem often makes it difficult to reach consensus without efficient governance mechanisms, causing most changes to current protocols to fall into a stalemate or dispute.

Objectives of Aelf

As mentioned above, one of the big problems with traditional blockchains is the limitations in the real world (seen in the ticket example) and the Aelf project aims, as they say, to be a "linux system" for the blockchain in that it allows others developers create custom systems based on applicable scenarios and customer needs. There is also the intention of a cross-chain interaction with other blockchains like bitcoin and ethereum in addition to other mainstreams networks. In order to bring stability to the blockchain, Aelf intends to be a cloud computing platform ensuring that no project causes instability in another, say a black friday trade is using a blockchain to process its orders, that would surely go cause at least a slowness in the system due to high traffic on the network, which in turn would compromise the performance of other projects that use the same blockchain, so they adopt and design a public Blockchain that is able to guarantee the proper functioning of each contract.

One of aelf's essential principles is to designate specific nodes to perform specific tasks. At aelf, vital decisions are made through a mechanism that resembles representative democracy. Delegated nodes must have sufficient votes from other stakeholders to participate in aelf's governance. To some extent, mining nodes constitute the health of the aelf System, so they are responsible for being the ‘accountants’ in addition to distributing bonuses and feedback to stakeholders who have placed trust in them, through Smart Contracts.

Partnerships

In addition to having world-renowned investors (which can be seen on the homepage of the aelf, io website), Aelf also has large and significant partners that can bring advantages and visibility to the project, including:

• Chainlink
• Huawei
• Amaten
• Poseidon Network
• Orange Telco
• Amazon Web Services 
• Google Cloud
• Microsoft Azure

I would like to comment on the importance and advantages that the partnership with chainlink brings to aelf, in case you don't know Chainlink has a network of decentralized oracles that provides contracts to obtain external connectivity and the software that feeds the network's nodes.

This provides aelf with the ability that very few blockchains have to connect to external data sources to ensure the security and reliability of information before it is sent over the network. This in itself is revolutionary and opens up a range of opportunities that can be exploited.

[You can read all about it clicking here]

Team behind the project

Apparently the main team of developers is quite solid, with academic and professional training both in the area of blockchain and in general trade. This can provide security as you can find the contributions mentioned in the descriptions above when you research thoroughly.

Token Aelf (ELF)

Aelf [ELF] is a token based on Ethereum blockchain listed on 30 exchanges with a sum of 56 active markets.

The ELF chart initially shows us something negative, a token that was once worth close to $ 3 is now quoted at $ 0.07. We also see a graphic figure known as a wedge.

Unlike charts of other altcoins, we see some peculiarities that give us confidence to trade or hold some currencies. One of them is the volume that despite having decreased significantly since the birth of the currency so far, still presents an above average value at the binance brokerage having its peak of the year in January with 89 Million. It is also possible to see that despite some peaks the volume has been decreasing little by little showing the exhaustion of the selling force.

Falling to the daily chart we can see that at the time when the price was going to do a new test on the downtrend line and there was the golden cross (which in cryptocurrency charts usually makes the price go back until close to the cross before going up again ) indicating that the price would be able to break this line, however that world event that brought the price of bitcoin to $ 4000 caused the altcoins to be affected as well, causing the death cross seen later. As can also be seen, we are preparing for a new test on the green line and a new golden cross, the expected and most feasible is that it makes the same move that I predicted for bitcoin in this study.

If you understand technical analysis you know that the wedge can also be read as a part of the channel and when the price breaks the upper line of the wedge it tends to seek the top of the channel, so it is important to keep in mind that if you start trading ELF that when the price compares the wedge we will not face an upward trend. We continue in a downward trend, but with a bullish bias, it means that there will be a possibility that the price will start to rise, but it is not yet confirmed.

Important points to keep an eye on in the short and medium term is the zone between $0.10 and $0.15, breaking through this region the most important points will be $0.34 and $0.50. Bulls will only be in charge if the price breaks with conviction and remains above the $0.7 range.

My view on the project

After reading the two whitepapers, researching the developers and analyzing the graphics, I came to the personal conclusion that the project is indeed incredible and deserves more detailed attention, the team of developers is apparently doing a great job and has thoroughly researched the problems of blockchain traditional to increase and present practical and viable solutions to them, the strong partnerships that aelf is making bring more and more innovation and security to the blockchain (such as the partnership with the chainlink mentioned briefly above), the proposal to "talk" with the bitcoin and ethereum blockchains also favor adoption a lot and last but not least we have the chart showing me several lucrative opportunities for short and medium term trade (especially with the new wave of market appreciation coming).

If you are interested in seeing more about the project, I recommend that you visit the aelf website and read the whitepapers in full.

After reading about all this I started to buy some tokens myself, thanks for reading so far :D