Aleo "Overcoming Existing Privacy Limitations with Private Smart Contracts"

Howard Wu, co-founder of Layer 1 blockchain Aleo (ALEO), announced on the 1st at Token2049 Dubai, held in Dubai, UAE, that they have overcome the shortcomings of existing privacy solutions through 'Private Smart Contracts'.

Howard Wu emphasized, "Aleo has overcome the technical and regulatory compliance shortcomings of existing privacy solutions such as Tornado Cash (TORN), Monero (XMR), and Zcash (ZEC) through Private Smart Contracts." Aleo is a Layer 1 blockchain based on Zero-Knowledge (ZK) proof technology, with its core product being Private Smart Contracts that encrypt the personal information of senders and receivers.

The co-founder highlighted the importance of Private Smart Contracts in payment systems through a presentation titled 'Tornado Cash 2.0: Cross-Chain, Compliance, Privacy Protection'. In the presentation, he identified ▲ Privacy ▲ Regulatory Compliance ▲ Cross-Chain Functionality as key elements that the Aleo network can utilize in payments.

The co-founder stated, "As a new blockchain supporting programmable privacy features, Private Smart Contracts are at the core of Aleo," adding, "The programmable feature allows for customizable privacy, solving the privacy and regulatory compliance issues of previous technologies, enabling private payments while maintaining compliance mechanisms."

He continued, "For example, in a situation where you pay with stablecoins using tap-to-pay at a coffee shop, the shop owner or barista should not be able to see my financial records," emphasizing, "Aleo's Private Smart Contracts encrypt payments so that the shop cannot access the user's financial records."

This explanation suggests that Aleo is addressing the issues of existing privacy solutions. The co-founder pointed out, "Existing privacy solutions like Monero and Zcash lack configurable compliance due to the absence of smart contracts and have insufficient regulatory compliance mechanisms," and "Tornado Cash poses a risk of privacy leakage due to gas fees."

Meanwhile, Aleo recently announced a roadmap for 2025, predicting updates that include improved developer experience, decentralization, and speed enhancements.