Aleph.im (ALEPH): A Comprehensive Overview of a Decentralized Cloud Solution

What is Aleph.im (ALEPH)?

Aleph.im is a peer-to-peer decentralized network dedicated to data storage, communication, and computing in a multi-blockchain environment. Co-founded in 2019 by Jonathan Schemoul, Aleph.im aims to help decentralized applications and protocols eliminate centralized dependencies in their technological infrastructures.

In a world where most of the internet relies on infrastructures managed by tech giants, Aleph.im proposes building a kind of supercloud for Web3. This unified and secure ecosystem connects and manages data from various blockchains, including Ethereum, Solana, Avalanche, Polkadot, Cosmos, Polygon, and the BNB Chain.

Aleph.im falls under the category of DePIN (Decentralized Physical Infrastructure Networks). The project leverages the consensus and security mechanisms of existing blockchains while using a distributed network of nodes to manage storage and computing tasks. Aleph.im offers a wide range of features, from blockchain indexing to decentralized database storage.

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Aleph.im's Vision

Today’s digital services landscape largely depends on centralized infrastructures managed by companies like Amazon AWS or Google. While effective in fostering internet development over the years, these solutions raise issues related to centralization, including censorship, vulnerability to outages, and risks of data breaches or theft.

Moreover, despite the ambition of a "decentralized web," many applications in the ecosystem still rely on centralized components for key functionalities like data storage or computation. For instance, many NFT collections store their images on off-chain servers, thereby losing the essence of these digital assets.

Aleph positions itself as an alternative, enabling any developer or business to access reliable computing resources worldwide. Using a decentralized network of nodes, Aleph.im provides a framework to overcome the limitations of centralization while delivering performance tailored to the growing needs of the ecosystem.

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The History of Aleph.im

The Aleph.im project was conceptualized in 2019 by Jonathan Schemoul, a French developer. Through his work, he quickly realized the aforementioned challenges: like Web2, Web3 requires computational power and storage to run the servers necessary for decentralized applications, but this must be achieved in a decentralized way.

After months of development, Aleph launched in late 2020, coinciding with the introduction of the ALEPH token. In 2021, things accelerated when Ubisoft chose to store the metadata of its Quartz project NFTs on Aleph.

In 2023, the LibertAI project emerged, aiming to provide fully decentralized and transparent artificial intelligence (AI) services. To achieve this, it stores its open-source language models on IPFS and operates them on the Aleph network.

2024 marked another milestone with the launch of TwentySix Cloud, a product developed by the Aleph team offering computing power and storage services similar to Amazon AWS, but entirely decentralized and secured by the Aleph network.

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Aleph.im’s Architecture and Technology

The Aleph network consists of several distinct layers working together to create a balanced system that delivers end-user functionality. Within these layers, two types of nodes play distinct but complementary roles: Core Channel Nodes (CCN) and Compute Resource Nodes (CRN).

Notably, Aleph is not strictly a blockchain but rather a decentralized peer-to-peer network designed to provide robust computing and data storage services.

Architectural Layers

The first layer of the Aleph ecosystem is the application layer. This layer executes the various applications and protocols running through Aleph. At a lower level, the SDK (Software Development Kit) layer is used to connect the two network layers (on-chain and off-chain) with the application layer.

Next, the off-chain layer is a custom peer-to-peer network powered by the Core Channel Nodes (CCN). It is responsible for Aleph's foundational infrastructure, including databases, file storage, network control and management, as well as validation processes. Technologies like IPFS are integrated here to ensure the system’s confidentiality and scalability.

Finally, the on-chain network layer facilitates interoperability between the different compatible blockchains, such as Ethereum, Avalanche, Solana, Polkadot, Polygon, BNB Chain, and Cosmos.

Core Channel Nodes (CCN)

Core Channel Nodes (CCN) play a central role in maintaining the security and integrity of the network, as well as in information exchange. They ensure communication between the various components of Aleph.im while serving as relay points to assign tasks to Compute Resource Nodes (CRN). These nodes are interconnected and form the backbone of the Aleph.im network.

Each CCN is directly connected to a maximum of five CRNs, to which it assigns received tasks while supervising their execution. The results are then transmitted back to the end users.

To operate a CCN, a minimum stake of 200,000 ALEPH tokens is required, a measure aimed at securing the network and ensuring the operators' commitment. Participants can also delegate their ALEPH tokens to CCNs of their choice to earn staking rewards. These rewards are distributed at regular intervals, approximately every ten days. Currently, the network includes 96 active CCNs.

Here are the hardware requirements to operate a CCN:

• Processor: Minimum 4 cores (recommended: 8 cores or more).
• RAM: Minimum 16 GB (32 GB recommended for better performance).
• Storage: A 1 TB SSD is recommended for fast data exchanges.
• Network connection: A reliable connection with at least 100 Mbps bandwidth.

Compute Resource Nodes (CRN)

Compute Resource Nodes (CRN) are the “workers” of the Aleph network, providing the computational power required for the supercloud. They supply the resources needed for computation, data storage, and other essential functionalities required by applications, websites, or protocols.

Unlike CCNs, CRNs do not require staking ALEPH tokens. However, they must be sponsored and registered by a CCN to participate in the network—a measure that helps limit their number and maintain quality in the infrastructure and services provided.

CRNs perform various tasks, including file storage, web application hosting, database management, and processing prompts for language models. In return for their work, CRN operators earn rewards in ALEPH tokens. To date, the network has 525 active CRNs, each making a critical contribution to the network’s overall capacity.

Here are the hardware requirements for CRNs:

• Processor: Minimum 8 cores (multi-threading processors are preferred for intensive tasks).
• RAM: 32 GB (64 GB recommended for heavy use cases like AI processing).
• Storage: At least a 2 TB SSD for data storage and fast content delivery.
• Network connection: A stable connection with a minimum bandwidth of 500 Mbps is strongly recommended.

Functioning and Task Workflow

Now that we have defined the main actors of the Aleph ecosystem, it is important to delve into the network's operation. Users include individuals wanting to store files online, businesses seeking to host a website, chatbots needing to run AI models, or individuals wanting to use a VPS.

When a user delegates a task to the Aleph.im network, their request goes through several steps. First, it is submitted to the network, which verifies that the user has enough ALEPH tokens to cover the associated costs.

The request is then transmitted to a CCN, which disseminates it to its peers until the entire Aleph network is aware of it. The network algorithm then selects the most suitable CRN to handle the task.

The CRN executes the requested function: if it involves data storage, it stores the file on its node; if it is website hosting, it delivers the correct page; if it is running a language model, it returns the prompt result, etc. Finally, the CRN shares this information with the CCN, which relays it to the end user.

This process ensures fast, secure, and reliable execution. Aleph.im's two-layered architecture efficiently meets the varied needs of users, from individuals to enterprises, while adapting to the growing demand for decentralized solutions.

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TwentySix Cloud: Aleph's Flagship Product

At the beginning of 2024, Aleph announced the launch of TwentySix Cloud, a decentralized solution designed to leverage the various products outlined above to offer services similar to those of major cloud computing companies like AWS, but entirely decentralized and based on a peer-to-peer infrastructure.

This service provides website hosting, whether static or dynamic, as well as decentralized computing power. Users can rent virtual machines or VPS servers through payments in ALEPH tokens, suited for diverse use cases such as executing programmable functions or running AI models.

In addition to computational power, TwentySix offers secure and resilient file storage fully distributed across the Aleph network. The service also includes specialized features such as verifiable random number generation and on-chain data indexing, making blockchain information accessible to developers and users.

By combining these services within a decentralized framework, TwentySix Cloud positions itself as a robust alternative to centralized solutions, meeting the needs of enterprises and developers in the Web3 ecosystem.

Aleph.im offers a range of solutions tailored to the diverse requirements of developers in the Web3 ecosystem. These products utilize Aleph.im's hybrid architecture, combining storage, computation, indexing, and hosting. Let’s examine each in detail.

Data Indexing

One of Aleph.im and TwentySix Cloud's primary products is its indexing system, which labels, organizes, and makes blockchain data accessible in a dedicated decentralized database. This system was initially designed for Solana, a particularly fast blockchain but one with complex transaction data organization.

For example, Aleph provides indexing services for protocols like Raydium and Serum, enabling them to analyze, process, and present relevant data to users. This allows real-time access to key metrics like TVL, user numbers, and more.

Decentralized Storage

Aleph and TwentySix Cloud offer decentralized data storage services. Unlike traditional centralized servers operated by a single entity (like Amazon, Dropbox, or Google), Aleph's system stores data on a distributed network of nodes.

Data is encrypted through a hashing mechanism, then divided into smaller fragments and distributed across the network’s nodes. This ensures that unauthorized entities, including network operators, cannot access the stored data. This service is particularly useful for dApps requiring reliable, secure, and scalable data management.

Decentralized Computing

Aleph's network also enables the execution of complex computations in a decentralized manner, again through TwentySix Cloud. This works similarly to decentralized storage, except that here, computational tasks are distributed across different nodes. Instead of using a central server, Aleph leverages unused resources from node operators while improving performance through parallelized processing.

This service is ideal for dApps needing to process large datasets or execute sophisticated algorithms, such as AI models or simulations demanding significant computational power.

Confidential Virtual Machines

Through TwentySix Cloud, Aleph also offers Confidential Virtual Machines (Confidential VMs), which utilize hardware encryption technology to ensure a high level of data confidentiality during use.

This system provides a secure and private environment for executing smart contracts handling sensitive data, ensuring that such data is not compromised. These virtual machines rely on Trusted Execution Environment (TEE) technology, protected by systems like AMD SEV.

Notably, user data remains private and encrypted even during processing in the cloud. Confidential VMs use hardware memory encryption to guarantee that data and applications cannot be read or modified during their operation.

Decentralized Web Hosting

Lastly, Aleph and TwentySix Cloud offer a Web3 hosting solution, enabling any developer to deploy a dApp seamlessly. Website information is stored on IPFS and managed by the Aleph network, leveraging the services presented above.

This solution brings the benefits of decentralization: security, privacy, and censorship resistance. It ensures that the hosting provider cannot access or alter site information or content.

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Ecosystem and Partners

Key Metrics

Team and Fundraising

The Aleph.im team was quickly built around key figures and advisors with strong experience in technology, blockchain, and entrepreneurship.

The two co-founders are Jonathan Schemoul, with 11 years of experience in project development and the blockchain ecosystem, and Claudio Pascariello, with 17 years of development experience across various companies and entrepreneurial ventures. The core team is completed by Andres Molins, Aleph's CTO.

The Aleph team is supported by several advisors, including Florian Le Goff, CEO of Synaps.io, and Daniel Bar, a Venture Builder specializing in marketing and VC relations. Additionally, Aleph.im raised $10 million in January 2022 in a funding round led by Stratos Technologies and other investors, such as NOIA Capital, Rarestone Capital, and TRGC.

Partners

• LibertAI: As the name suggests, LibertAI aims to provide free and decentralized AI. To achieve this, the project uses open-source language models stored on the IPFS network for greater transparency.

LibertAI offers several tools, including a ChatGPT-like interface on its website and a Telegram chatbot for interacting with the AI. Once prompts are generated, they are executed on private virtual machines within the Aleph network, and the results are returned to users. Both the web and Telegram interfaces are functional and accessible today.

There are many potential use cases for LibertAI’s technology, ranging from simple chatbots to intelligent agents. These technologies are expected to evolve with or without blockchain. LibertAI provides a more open, transparent, and distributed version.

• Ubisoft: Among its notable partners is Ubisoft, the renowned French video game developer and publisher. At the end of 2021, Ubisoft launched a service called Quartz, allowing players of Tom Clancy’s Ghost Recon Breakpoint to obtain Digits, which represent in-game items that are collectible and tradable.

In reality, these Digits are non-fungible tokens (NFTs) issued on the Tezos blockchain, with metadata stored entirely on-chain using Aleph’s secure storage service. This marked one of the first forays of Web3 into gaming.

In July 2024, Ubisoft confirmed its long-term commitment to working with Aleph by using TwentySix Cloud for certain functionalities in its new on-chain game, Champions Tactics Grimoria Chronicles. Specifically, the game's NFTs will utilize Aleph’s Verifiable Random Function (VRF).

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ALEPH: Aleph.im’s Cryptocurrency

The ALEPH token is central to the Aleph ecosystem, playing a crucial role as a means of payment for service users, an incentive tool for contributors, and a governance mechanism.

The Roles of the ALEPH Token

• Service Payments: ALEPH is used to access various network functionalities, such as storage, decentralized computation, and data indexing, with costs varying by service.
• Staking and Security: Node operators must stake ALEPH tokens to participate in the network’s operations. This mechanism acts as a form of collateral, encouraging operators to maintain the platform's integrity and security.
• Participant Incentives: Node operators earn ALEPH rewards for their contributions, whether in computing power, storage, or maintaining network operations.

ALEPH Tokenomics

Initially capped at 1 billion ALEPH, the token's maximum supply was quickly halved to preserve the network's sustainability, resulting in a new cap of 500 million ALEPH tokens. These are distributed among network rewards, ecosystem development, and initial sales, supporting Aleph.im’s growth and adoption.

• Incentives and Stability: Staking and reward mechanisms ensure a steady distribution of tokens while encouraging operator participation.
• Growing Demand: The increasing use of Aleph.im’s services drives demand for the ALEPH token. As more developers and users adopt the platform, this dynamic could lead to a rise in the token's value.

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Conclusion

Aleph is an innovative project distinguished by its unique infrastructure, offering Web3 the means to fully realize its decentralization potential. To achieve these ambitions, Aleph integrates an architecture divided between two types of nodes: Core Channel Nodes, which secure the network, and Core Resource Nodes, which provide computational power and storage capacity.

In the coming months and years, Aleph faces the challenge of continuing to expand its network to offer more features while attracting more users and enterprise partners. In a Web3 universe moving toward greater professionalism with the growth of decentralized physical infrastructure networks (DePIN), Aleph could position itself as an essential solution for meeting the computing and storage needs of crypto projects, all while remaining decentralized.