Continue Capital Made A Strategic Investment in Algorand, Became One of the 25 Nodes, Contributed to the Contribution of the New Generation of Commercial Public Chain

Continue Capital
Aug 31, 2018 · 5 min read

The Perspective of Continue

Continue Capital has long contributed to exploring and supporting the new generation of blockchain projects and randomized consensus, the latter of which is the heated topic of consensus mechanism. From both theatrical and practical aspects, this move will push the commercial application of blockchain into the next phase.

Continue Capital strategical invested in Algorand, as we believe that Algorand is indispensable in the “impossible triangle”, which is to find the best balance among scalability, security, and decentralization.

Decentralization:Currently, a number of blockchain projects pursue high performance of scalability at the cost of decentralization. Algorand replaces participants in every step to avoid attacks from other selected participants so as to decentralize the internet structure to the maximum level.

Security:Algorand has proved in theory that the >2/3 honest nodes requirement in typical BFT consensus protocols to >2/3% of coins — a weaker “honest majority of money” requirement. The rationale is that wealthy accounts are less likely to attack their own network and double spend.

Scalability:Algorand solves the mainstream problem of all-internet confirmation that leads to the low efficiency of common blockchain. It establishes contemporary committee via verifying random functions and efficiently confirms transactions, puts transactions in order and avoids related attacks.

Algorand is widely accepted as the new generation of blockchain. This project is in the phase of active development and now the first testing version has been released and is open for public testing. Algorand‘s main net will be launched at the end of this year or the beginning of the nest year.

About Algorand

Overview of the project:Algorand was founded by Silvio Micali, Professor of MIT and the winning of Turing Award. It has the best R&D team composed of MIT experts in the blockchain area and an all-star advisor team. It first proposed random consensus mechanism in the blockchain area and aims to become a highly scalable, secure and decentralized blockchain with the ability to flexibly resist fork and make final confirmation of blocks within a minute.

The founder Silvio Micali is a MIT computer science, the winner of the Turing Award known as the” Nobel in Computer”. He was also the co-founder of zero-knowledge proof, who is renowned in the field of public key cryptosystem, pseudo-random function, digital signature, Byzantine Agreement, secure multiparty computation. Algorand team led by Professor Micali is composed of top cryptology experts who are outstanding in the field of MIT computer science with solid professional theories and scientific research capabilities. What is more, Algorand has advisors that are industry leaders in strategic management, economics, computer science and encrypted currency, including famous venture capital Pillar and partners of USV, professors from MIT, Harvard University, top American digital engineering and computer science related universities, founders of COINLIST and cofounders of ZEC underlying protocols.

Analysis of core technologies

Algorand is devoted to solving problems shared by current consensus mechanism of public chain, that is to save energy, reduces uncertainty of POS, and solves inability to support a large number of nodes consensus in the circumstance of a large number of nodes.

Algorand employs verifiable random functions, POS(account balance weight) and new Byzantine Agreement Protocol (BA), using the integrated consensus mechanism to improve TPS while not sacrificing the decentralization, privacy and expandability of block chain.

The consensus process is divided into 2 steps;

First, to randomly select a small amount of people from the crowd. The process selects limited participants based on the weight of tokens and chooses the leaders and testifiers based on verifiable random functions.

Second, to conduct BA consensus on the chosen participants, produce leadership block and promote block information while the rest testifiers use divided new BA to realize small-scale block consensus and distributed block information to all network.

Verifiable random functions

Micali was one of the founders of verifiable random functions (VRF). VRF is a means that produces random functions that each user can make independent decisions on whether he or she is competent as a committee member based on calculations of VRF of public information on their private and public keys. This proves is non-interactive that efficiently protects the privacy of information and avoids the possibility of participants being attacked by other users.

BA* — Byzantine Agreement Protocol

BA* is highly expandable and far exceeds any other chain consensus in BA. In the process, each node can constantly propose suggestions until the successful selection of the highest weight.

BA* can be divided into two parts, as the table below shows.

First, simultaneous select the block with the highest priority, that is, to conduct layered consensus agreement by testifiers and select the most agreed candidate.

Second, confirm the stable consensus ability of the block, that is, to allow testifiers to choose the candidate block for BA verification to either accept it or the empty block.

About Continue Capital

Founded in 2016, Continue Capital focuses on investing in global blockchain technologies, early-stage technology startup and providing Quant-Trading service. We are built to incubate and partner with those ambitious enterprises that promote technological innovation and advance business model revolution. Our investment strategy covers USA, Europe, China and Singapore worldwide. Our core team members are early Bitcoin community members, including top Venture Capitalists, professional Blockchain Developers and technical Talents from Internet Giants, located in China, Japan, and USA.

Our mission is to act as the pioneer to widespread blockchain adoption and innovation, reduce the cost of mutual trust, improve the efficiency of large-scale collaborative operations. We hold the view that flattening trend of thought will further deepen the hearts of people as the blockchian technology changes the productive relationship.

our website: https://continue.capital

our Twitter: https://twitter.com/ContinueFund

Continue Capital

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Founded in 2016, Continue Capital focuses on investing in global blockchain technology, early-stage technology startup and providing Quant-Trading service.

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