It also runs computation off-chain, and creates zero-knowledge proofs by using an external network of third parties or offering services. It also makes use of a hybrid consensus technology known as Aleo BFT, which blends the ability to scale proof-of-stake and the security of proof-of-work in order to ensure that it is done in a secure method.

Blockchains using proof-of-stake utilize validated transactions to prove that transactions are valid that are based on its stake on the system. Blockchains that use proof-of-work chooses validators to verify transactions on the basis of their capacity to solve difficult computational problems.

Aleo BFT blends these two methods by requiring validators to simultaneously solve a quick demonstration-of-work puzzle and then stake their tokens. Alongside ensuring the security and scalability of the network it also prevents one person from having a monopoly on it.

This four-part collaboration creates the Aleo ecosystem feasible. The VM does all the computation and the OS keeps track of the network's verified state as well as the mechanism for consensus assures that proofs are produced and accepted within the Aleo's distributed configuration.

Additionally, Aleo offers a comprehensive selection of development tools and APIs that make it an all-in-one solution for developers seeking to develop websites that value privacy.