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UTXO Alliance Grows Stronger with Addition of Alephium

UTC by Julia Sakovich · 2 min read
UTXO Alliance Grows Stronger with Addition of Alephium
Photo: Coinspeaker

Alephium is the first operational sharded blockchain that deploys ETH-inspired smart contracts, while leveraging the best of Bitcoin’s battle tested blockchain and technologies.

The future of the blockchain relies on interoperability between the various infrastructures across both Layers 1 and Layers 2 chains. The importance of this comes from the ability to transfer data and value across entire ecosystems. This ensures scalability, interoperability and a shared programmability across ecosystems.

The UTXO alliance is one such melding of chains in a way that contributes to a greater whole. It is a partnership and mutual integration across protocols that include Ergo, Nervos, Topl, and Komodo. Now Alephium, the first-ever sharded blockchain, has joined this collaboration.

What Is Alephium?

Alephium is the first operational sharded blockchain that deploys ETH-inspired smart contracts, while leveraging the best of Bitcoin’s battle tested blockchain and technologies. Alephium has enjoyed several months of positive milestones, which include launching its mainnet, and then soon after raising $3.6M in a pre-sale from leading funds and smaller buyers.

According to Cheng Wang, Alephium founder & core developer, “The increasingly high demand for scalable and secure DApps, and more specifically DeFi, is a great opportunity for UTXO blockchains. UTXO-based designs will be the new paradigm for DeFi development. The alliance will play a key role in driving its mass adoption.”

Being based off of the UXTO blockchain allows Alephium to target scalability challenges on the blockchain. Its sharded blockchain tackles the issues of both scalability and DeFi security through both its unique BlockFlow algorithm and its novel stateful UTXO model. This model brings the scalability of Layer 1 chains and the enhanced level of programmability as the account model. Additionally, Alephium uses a dedicated virtual machine, founded on the UTXO model, which targets both the security challenges and sluggish execution of the Layer 1 chains.

The UTXO alliance, which is laser focused on collaboration in order to propel the model forward, is composed of some of the most innovative and creative minds in the blockchain arena. The alliance welcomes other UTXO developers to join the cause here.

Blockchain News, Cryptocurrency news, News
Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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Alephium, the brainchild project of Cheng Wang, aims to scale blockchains to handle tens of thousands of transactions per second in an open, permissionless network. Its core algorithm, called BlockFlow, combines sharding technology with DAG (Directed Acyclic Graph) and utilizes a scalable UTXO (Unspent Transaction Output) model to resolve the inefficiency of sharding performance during cross-shard transactions.