Why We Built the First Milkomeda Rollup on Algorand

The Milkomeda A1 Rollup is now live on the Algorand mainnet and here we’re going to provide some insight as to why we chose the Algorand blockchain as the place for Milkomeda’s second interoperability solutions, and our first EVM-based rollup.

The reasons for this are many and varied but they can be split into two distinct categories: why Algorand is a great candidate for a rollup, and how Algorand is technologically superior to other blockchains. Here we’ll touch on how the protocol has all the elements needed for building a rollup, as well as the technological superiorities that make Algorand stand out above other blockchains. We’ll also touch on how the Milkomeda A1 Rollup is going to be a game changer for the Algorand ecosystem!

Why Algorand is a Great Candidate for a Rollup

A rollup uses the layer 1 blockchain for data availability, enabling node operators to reconstruct the state of the rollup from the posted data and query it for things like token balances and the state of smart contracts. One of the most important parts of posting this data to the layer 1 is that it is properly sequenced.

Algorand can be used for sequenced data availability thanks to each transaction’s arbitrary data field, and its Atomic Transfer functionality. Each Algorand transaction allows for up to 1kb of arbitrary data in a Transaction Note field, and the Atomic Transfer functionality means that up to 16 transactions can be posted to the blockchain as an atomic group, meaning that they must all be included in the same block in the given order, or all fail.

Posting A1 rollup transaction data to Algorand heavily uses Atomic Transfer group capabilities. There is no worry even when data-carrying capacity of an atomic group (16 kb) is exceeded: in that case we use multiple groups, which get sorted using merkle proofs. Read more details on our solution for sequenced data availability on Algorand here. Like all rollups, the A1 Rollup inherits the security of the layer 1 chain. These protocol parameters allowed us to build an effective rollup on Algorand. But they aren’t the only reason we chose Algorand for the first Milkomeda rollup.

Why Algorand is Technically Superior to Other Blockchains

Algorand was built to solve the blockchain trilemma of security, scalability, and decentralization. To do this the creators of Algorand developed a unique Pure-Proof-of-Stake (PPoS) consensus mechanism that allows any stakeholder in the Algorand ecosystem, no matter how small their stake is, to partake in the consensus mechanism and be rewarded for doing so. The unique way in which this PPoS consensus mechanism works means that it is impossible to fork the chain, enabling Algorand to operate with near-instant transaction finality.

Algorand transactions are finalized and confirmed in under 4 seconds, and the blockchain offers a throughput of up to 6000 TPS, far above the regularly quoted “gold standard” of the Visa network’s average of 1700 TPS. This allows Algorand to scale to potentially billions of users, all while continuing to offer extremely low transaction fees — as low as 0.001 ALGOs, $0.0004 USD, at the time of writing.

Assets created on Algorand, Algorand Standard Assets (ASAs), are native, on-chain assets that do not require a smart contract to exist. Uniquely, a user must opt-in to receive each specific asset, preventing the random distribution of airdrops across the network.

Smart contracts on Algorand are split into on-chain and off-chain contracts. The execution of off-chain smart contracts is completed separately from the blockchain consensus committee. Allowing these contracts to be large and computationally complex without clogging up the blockchain and its finite set of resources.

State proofs are relatively new to the Algorand blockchain, and they allow the blockchain to sign any message so that it is easily verifiable by every user. These can be used to secure the Algorand blockchain against quantum attacks and to construct decentralized bridges between Algorand and other chains.

Beyond the technology, Algorand is also the first carbon-negative blockchain allocating a portion of each transaction fee to offset the already minimal carbon emissions from its PPoS consensus mechanism. With all this in mind, Algorand has a bright future, and the Milkomeda A1 Rollup is helping to expand and accelerate that future.

How the A1 Rollup is A Game Changer for the Algorand Ecosystem

The A1 Rollup, developed by Milkomeda, exposes the Algorand network to developers writing in Solidity, the world’s most popular smart contracting language. This means that these developers don’t need to learn a new language or reconfigure their dApps to make them accessible to members of the Algorand ecosystem. They simply launch their existing dApps with little to no changes to the underlying code.

This ease of deployment not only increases the variety of dApps available to members of the Algorand ecosystem, it also greatly increases Algorand’s exposure to the wider blockchain world and the users of other blockchains who will now be able to access Algorand through the bridges built between those blockchains and Milkomeda. This allows them to bring their liquidity over from other chains to experience all the technological benefits Algorand has to offer.

If you want to find out more about the types of projects Milkomeda can bring to the Algorand ecosystem then read our article on How is Milkomeda Going to Boost Adoption and Developers in the Algorand Ecosystem.

Test the A1 Rollup for Yourself!

The A1 Rollup was launched on the Algorand mainnet on October 19th, and there are already protocols live on the rollup for you to use–-including DeFi protocols and bridges to other EVM-based blockchains! Users can now experience EVM functionality with the incredibly fast transaction finality offered by the Algorand blockchain. To find out how to interact with the A1 Rollup and experience this then check out the guide in our documentation.

Don’t forget to follow us on Twitter to keep up with updates related to this release, and to subscribe to our Medium to be the first to hear about the launch of more protocol on the A1 Rollup.

Follow Milkomeda:

Website: milkomeda.com
Twitter: Milkomeda_com
Medium: Milkomeda Foundation
Documentation: Github

Follow Algorand:

Website: https://www.algorand.com
Twitter: Algorand
Medium: Algorand Foundation