Initially, Alvalor was started as a hobby project. The core idea was to play around with the Bitcoin Lightening Network. For the uninitiated, the Lightning Network is a “second layer” payment protocol that operates on top of a blockchain (most commonly Bitcoin) and enables instant transactions between participating nodes. The layer has been touted as a solution to the Bitcoin scalability problem.
Though other teams were developing prototypes, there was no live project implemented as of late 2016. The Alvalor team focused on creating their own live lightning network on a Bitcoin clone, but they soon realized they were pivoting to recreating the blockchain base layer itself. This led to the development of the Alvalor philosophy centered on developing a new minimal blockchain network with multiple layers.
The idea is to create and augment useful blockchain layers. Alvalor’s device footprint is smaller compared to Ethereum’s and Bitcoin’s, which will give it an advantage over the two in the long run. The complexities have been shifted to a second layer solution to keep the blockchain as small as possible. The difference can be gauged from the fact that the Ethereum blockchain is at 300GB space whereas the founders predict Alvalor will take years to reach even 5 GB.
Currently, the company focuses on spending time as well as resources on assisting businesses set up their own secondary levels on the former’s base layer. They are planning an Alvalor token airdrop on Ethereum.
Alvalor is a new modelling framework for the blockchain. The characteristics of a simple base layer allows for handling transactions and data packages at remarkable speeds and efficiency. Alvalor’s secondary blockchain layer will consist of a combination of the Ethereum platform and the Lightening Network. Users will not have to undergo multiple transactions for either depositing or withdrawing funds. The first product will host a secondary channel to allow lightning fast transactions. The team is also working on pilots with a decentralized lending platform, a private bank, and for supply chain tracking.
Alvalor Network Performance
Alvalor’s USP is that it isn’t aiming to solve for scalability but aiming for building the perfect base layer for allowing developers to build various scalability solutions. The network performance triangle is based on enhancing the right balance between security, efficiency (transaction cost), and reliability (decentralization). Each secondary channel solution has any of these traits. Users are given the required freedom to choose the right channel as per their suitability.
The company has two targets. They want to motivate companies and blockchain projects to build on Alvalor’s base blockchain, and they want to onboard end users with their in-house mobile wallet, which is being built on the secondary layer. The wallet will also act as a conceptual prototype for what other developers can build on their platform.
The Alvalor Team
Alexander Bremin and Max Wolter are the founders of Alvalor. Alexander has been active in the blockchain community since 2013. Max Wolter, who has worked with the blockchain since 2011, emerged as the core development leader. Their partnership started with work on a minimalistic blockchain base layer that has since become hundreds of lines of code fewer than Bitcoin’s. Their are planning to release the base layer soon. Other members of the team include an economist, a designer, and back & front end developers. Core team members are based out of Luxembourg, but there is a small community growing in the United States.
All the contributors are believers in Alvalor in hopes that future funding will be structured through Tokenization. They will sell 20% of the tokens through the legal entity. Currently, there is no funding in place as the team is devoting their free time on the project, but once the legal structure is in place, the plan is to decentralize governance and continue developing.
ICO Projects and the Future
Bremin believes high profile ICO projects launching applications is just around the corner. He also believes the market will have a 90% failure rate, similar to what is seen in the startup universe. But there are a few current projects he is excited about.
He believes 0x’s transaction protocol for Ethereum has promise. Gnosis’s prediction markets is another evolutionary application which would allow users to build smart contracts on various eventualities. And believes the upcoming EOS launch of its prototype network is also encouraging. The market is excited about the Digix DAO’s imminent launch of proof of asset protocol through which tokenization of gold and other assets would become possible.
In the next five years, Alvalor intends to put its efforts into research. It is partnering with the University of Luxembourg for development of an advanced form of routing protocol for second layer channels on the blockchain. The company will also support projects that desire to utilize its base layer.
Whether or not Alvalor can get up to full launch is yet to come, but this is one project that looks promising at first glance.
Written by Heena Dhir.