# Example of Aleo work By [Nataliiiiii](https://paragraph.com/@iamcryptogirl) · 2024-07-31 --- Let's consider how the combination of all these technologies changes the usual mechanism of operation of decentralized applications. For example, users trade on DEX - a decentralized exchange. ![Arcane Finance, DEX on the Aleo network](https://storage.googleapis.com/papyrus_images/3e8d7411651e0d6a6e3a0252041fe25e74a01173c4a07fbf9bdb4578bb4420ca.png) Arcane Finance, DEX on the Aleo network For the most part, DEXs work with the user’s wallet fully linked to the exchange’s smart contract. As a result, the exchange always knows how many tokens someone has, what the balance of these tokens is, when and where they move. Even when a user is not trading, the DEX smart contract still tracks their wallet so that once the user returns, the exchange is always ready to accept their order or reject it if it is incorrect. This is very convenient, but completely redundant, because so much information is not needed to complete a transaction. But the anonymity of users of such an exchange is a big question - if someone one day manages to establish a connection between a wallet and an individual, then all the assets of this individual will automatically become known to a third party, because all data on the network is open. In a DEX on the Aleo blockchain, only the information needed to complete a transaction will be used. Namely, that you currently have a sufficient amount of the token that you want to exchange. You don't need to reveal your entire wallet to do this; you just need to provide verifiable proof of that fact alone. And the calculation of your final balance can be done even outside the blockchain itself - the main thing is that it does not contradict the attached evidence. Then DEX will not know your wallet, your assets, or when and from whom these assets were purchased. Everyone involved will receive proof that you have enough token in your account and you want to change your balance by a certain amount. And only this change will be included in a transaction that will change the state of the network, and only this change will be reflected in the blockchain. And all participants in the token exchange will remain anonymous. ![](https://storage.googleapis.com/papyrus_images/cc8866e6009087dc8a6c334ed4d0b8719ad77bd660c71edd7a58a662f20ac0ea.jpg) **Aleo** - a new Layer-1 blockchain built on the basis of ZKP. Spent immediately [3 investment round](https://dropstab.com/coins/aleo-ico/fundraising) in a year, managing to attract a fantastic $298 million. List of investors - the best representatives of Tier-1 and Tier-2 with the lead investor in the person of the legendary venture fund a16z. From these data, several facts can be mentioned: 1. In 2021-2022, funding for zkp was mainly received by Layer-1 and Layer-2 networks. This is due to the fact that these projects are currently laying the infrastructure of this technology. 2. During the last bull market, the anonymity and ZKP sector became the most funded, along with the DeFi segment. In total, all companies in this sector have raised several billion dollars. 3. Such a huge amount of investment suggests that all the largest investors are making a key bet on this decision. And this is primarily due to the fact that ZKP solves the 2 main problems described above - scalability and privacy. and based on the above, we can imagine how useful and popular the alley blockchain will be after its launch. We are very much looking forward to the release to the mainnet. Now the Aleo project is in the final phase of the testnet, and entry into the mainnet is planned for the beginning of 2024. The solution stands out technologically from other L1 blockchains and has great prospects for the development of its ecosystem. Already now you can try out the first applications on this network, such as Arcane Finance, Shadow Finance, AleoStore, AleoSwap, by installing and creating a Leo wallet. **Links:** Website ~ [https://www.aleo.org/](https://www.aleo.org/) Twitter ~ [https://twitter.com/AleoHQ](https://twitter.com/AleoHQ) Community Twitter ~ [https://twitter.com/aleocommunity](https://twitter.com/aleocommunity) GitHub ~ [https://github.com/AleoHQ](https://github.com/AleoHQ) Community Forum — [https://community.aleo.org/](https://community.aleo.org/) Community Calendar ~ [https://www.aleo.org/community/calendar](https://www.aleo.org/community/calendar) YouTube — [https://www.youtube.com/channel/UCS\_HKT2heOC\_q88YQLiJt0g](https://www.youtube.com/channel/UCS_HKT2heOC_q88YQLiJt0g) Developer Documentation ~ [https://developer.aleo.org/](https://developer.aleo.org/) Leo Playground ~ [https://play.leo-lang.org/](https://play.leo-lang.org/) Aleo Block Explorer ~ [https://www.aleo.network/](https://www.aleo.network/) Community Blog ~ [https://medium.com/@AleoHQ](https://medium.com/@AleoHQ) Announcements Blog ~ [https://www.aleo.org/blog](https://www.aleo.org/blog) --- *Originally published on [Nataliiiiii](https://paragraph.com/@iamcryptogirl/example-of-aleo-work)*