Aleo to test Virtual Machine ahead of mainnet launch

Quick Take

Aleo will launch its third testnet next week featuring a Virtual Machine.
The testnet enables privacy-preserving applications on Aleo for the first time.

Layer 1 blockchain Aleo will launch the Aleo Virtual Machine (AVM), a computational platform to run privacy-focused apps on its network, as it looks to attract developers to its ecosystem.

While Aleo is still in the testnet phase, next week it will introduce the AVM as part of its upcoming "testnet 3" launch scheduled between August and October. According to a note shared with The Block, the team sees the testnet as an opportunity to onboard new Aleo developers ahead of its mainnet launch in the fourth quarter of 2022.

“Our focus is to build the absolute best developer framework for decentralized private applications,” Aleo co-founder and CEO Howard Wu said on the testnet 3 plan.

The testnet is incentivized and will reward developers with token incentives for running applications. Similarly, it will also allocate bounty rewards for bug hunters during the testnet period.

Aleo leverages zero-knowledge proofs, a cryptographic technology that can verify data while it remains encrypted and hidden from the verifying party. Per the team, Aleo wants to offer applications in areas like payments, decentralized finance, identification management and gaming.

In February 2022, Aleo raised $200 million in a Series B funding round co-led by SoftBank's Vision Fund 2 and Kora Management.