Welcome to our regular biweekly report on Algorand! As always, it contains all the news and updates that happened within the extensive Algorand ecosystem over the past two weeks. But before we start, let’s have some quick takes on the major events!
Algorand recently announced the launch of comprehensive smart contract capabilities that join already existing suite of features to power a new wave of sophisticated applications across DeFi & beyond. Unlike first-generation blockchains, Algorand’s platform was designed from the ground up to power complex applications that require speed, scale, finality, and security, while being cost-effective and precise. Here they are! This was also widely highlighted in media — check the reviewing articles by Coindesk, Cointelegraph, and others in the report below. What’s more, the rekeying feature was announced, allowing users to change their Private Spending Key without the need to change their Public Address. It affects users’ operational efficiency to maintain existing Public Address as identifiers for other people and custody providers that continuously transact with that Public Address, lowering operational burdens.
Furthermore, digital security exchange Archax has formed a partnership with Algorand to build a new line of products to bridge the gap between centralized and decentralized finance. Archax and Algorand will work together to release “innovative smart financial products” including stablecoins using smart contracts and liquid alternatives — mutual funds or exchange-traded funds (ETFs) that aim to provide investors with diversification.
Next, AlgoSigner, the first Algorand wallet extension, is now available. As an open-source browser plug-in, AlgoSigner provides a secure way for the Algo token holders to interact with dApps without granting them control of their keys. As a browser extension, AlgoSigner opens the door for developers to build DeFi applications on Algorand by providing a secure way to add transaction capabilities.
By the way, bountyblock became the latest recipient of the Foundation Grant. Since the Algorand Foundation launched its Grant Program this year, many developers and innovators worldwide have been eager to participate. The most recent grantee, bountyblock, is a gamification platform used by third-party applications to create challenges and tasks that can easily integrate with their existing product. Implementing gaming mechanics into applications highly motivates and promotes user engagement, and thus, it is critical for applications to maintain and grow their user base and revenues.
Apart from the mentioned above, a paper was released by Runtime Verification in collaboration with Algorand and the Algorand Foundation’s support. In this research, the authors report on the effort to model and formally verify the Algorand consensus protocol in the Coq proof assistant.
Also, don’t miss an article by Silvio Micali, where he shares thoughts on the newly-released Stateful TEAL contracts that make ASC1s more powerful and efficient than ever before.
The number of Algorand media channels’ subscribers and active participants in chats is prone to grow. That’s all for today — more to come in two weeks!
Development
Check out the latest developer resources at developer.algorand.org
It was announced, the launch of comprehensive smart contract capabilities that will enable the creation of DeFi solutions and dApps that can scale to billions of users, tens of millions of daily transactions, with negligible transaction fees, all while taking advantage of the layer-1 benefits of the Algorand protocol. Unlike first-generation blockchains, Algorand’s platform was designed from the ground up to power complex applications that require speed, scale, finality, and security, while being cost-effective and precise.
Algorand’s New Rekeying Feature allows users to change their Private Spending Key without the need to change their Public Address. Today, most blockchains require a complete transfer of funds from one wallet to another, to enable trustless transactions between two parties, which creates substantial inefficiencies and unnecessary risks.
Rekeying enables users to have the:
- Flexibility in their ability to change the Private Spending Key anytime without needing to change the Public Address
- Continuity with the ability to continue using the same Public Address and keeping the assets in the same Public Address
- Operational Efficiency to maintain existing Public Address as identifiers for other people and custody providers that continuously transact with that Public Address, lowering operational burdens
Algorand’s layer-1 smart contracts are executed at the very consensus layer, the most secure layer in any blockchain, without slowing down block production in the least. These smart contracts are thus as efficient and secure as ordinary payments. They are also called TEAL contracts, because they are written in a special language: TEAL, short for Transaction Execution Approval Language.
Algorand’s layer-1 smart-contract platform has two components, namely:
1. Stateless TEAL contracts.
This technology was released last November (2019) and has been discussed in my earlier blog.
2. Stateful TEAL contracts.
This technology is being released this August (2020) and is the subject of this blog.
Check the article above for more.
Rand Labs has recently revealed a novel architecture for an Algorand Oracle that facilitates the swap of two assets fully on-chain, you can read more about the testnet implementation here. Borderless Capital has committed additional resources to the project and have successfully evolved the Oracle from our initial prototype into a TEAL-compatible ALGO/USD on-chain Oracle using Coinbase.com as the data source. The revamped Oracle is now in production and running on Algorand’s MainNet. The TEAL ALGO Oracle will inspire and enable a new generation of financial products in the crypto ecosystem. For the first time in a high performance public-permissionless blockchain, the Oracle runs on layer 1 of the protocol. This means that any Algorand user or application will be able to reference the market price of an asset inside of their transaction (including atomic transfers) with negligible fees and receive a confirmation in under five seconds, only possible due to its unique Pure Proof-of-Stake consensus based on VRF primitives. This infrastructure will democratize access to DeFi products and services which are cost prohibitive for sub-$1k transactions on other blockchain platforms. Developers will have the choice over what data provider they use for their oracle, and the authenticity of the published data can be verified using signed messages of the provider that will come in the next iteration of this technology.
Breaking changes:
- Compiling a PyTeal program must now be done with the compileTeal(program, mode) function. The .teal() method no longer exists.
- The API for group transactions has changed from Gtxn.field(transaction_index) to Gtxn[transaction_index].field().
- Tmpl syntax has changed from Type(Tmpl(“TMPL_NAME”)) to Tmpl.Type(“TMPL_NAME”).
In this tutorial, they show how to participate in consensus from an account stored in a Ledger Nano S or X. By participating in consensus, you help decentralize the network.They highly recommend reading the Overview on Participating in Consensus before starting.
- A guide: Real-Time Block Visualizer with Vue
This tutorial shows how to include the algosdk library to read Algorand data within a Vue project.
They display falling squares in a canvas where each unit represents an Algorand blockchain block creation in real-time. Completing this tutorial will set you up for developing more complex Algorand applications with Vue. Demo is accessible via the link.
This paper was released by Runtime Verification in collaboration with Algorand, and with support from the Algorand Foundation. GitHub Algorand Coq repo is accessible via the link.
In this paper, they report on the effort to model and formally verify the Algorand consensus protocol in the Coq proof assistant. Similar to previous consensus protocol verification efforts, they model the protocol as a state transition system and reason over reachable global states. However, in contrast to previous work, their model explicitly incorporates timing issues (e.g., timeouts and network delays) and adversarial actions, reflecting a more realistic environment faced by a public blockchain. Thus far, they have proved asynchronous safety of the protocol: two different blocks cannot be certified in the same round, even when the adversary has complete control of message delivery in the network.
Social encounters
- As Ethereum 2.0 gets bogged down in delays, Algorand pounces for DeFi market by Modern Consensus
“Now, the DeFi-focused blockchain Algorand is throwing its hat into the ring — and making it clear that it’s determined to seize market share from Ethereum. It has launched cutting-edge smart contract capabilities that will allow DeFi solutions and dApps to be created “that can scale to billions of users and tens of millions of daily transactions.”
- Algorand’s Newest Upgrade Turns the Project’s Eyes Toward DeFi by Cointelegraph
“In a Cointelegraph interview, Algorand’s head of product Paul Riegle emphasized the three key features of this upgrade: the addition of stateful smart contract functionality to the base layer, “fast catchup” and “rekeying”. The Algorand team believes the new features make it a viable competitor in the DeFi space.”
“Algorand clearly wants to woo its own batch of YAMs, yield farmers and the innumerable DeFi products that have sprouted up like mushrooms on Ethereum all summer. “DeFi gives the world access to an essentially unlimited number of financial products and services,” Micali said in the statement.”
- Algorand To Facilitate DeFi App Creation With Major Network Upgrade by CryptoPotato
- Algorand, new smart contracts to help DeFi grow by Cryptonomist
Upcoming events
- 31st August 2020 — En[code] Algorand Club. The ‘Club’ is a 10-week online pre-accelerator taking the best university, hackathon and early-stage projects worldwide and helping them take the leap to becoming fully-fledged startups.
Finance
To qualify for the second distribution, accounts must maintain their program minimum balance up to and including round number 8,793,000, which will occur approximately on August 31st, 2020, 23:59 Singapore time. To receive the second distribution of rewards, participants must have completed KYC for their qualified account by Monday, August 24, 2020, at 23.59 Singapore time. Distribution of tokens will take place on, or around, Thursday, September 3rd, at 02:00 Singapore time. For those participants who had qualified wallets but were not KYC complete, their ALGO staking reward will be placed in an escrow wallet, until the next period staking rewards distribution. These staking rewards will be distributed at that time if the participant is then KYC complete. If not, the cumulative periods’ staking rewards will continue to be placed in escrow, subject to certain conditions (see this link).
As an open-source browser plug-in, AlgoSigner provides a secure way for holders of the Algo token to interact with dApps without granting them control of their keys. As a browser extension, AlgoSigner opens the door for developers to build DeFi applications on Algorand by providing a secure way to add transaction capabilities. This enables developers to initiate transactions and accept Algos seamlessly, without jeopardizing the security of their users’ secrets.
Roadmap
By combining cutting-edge research and innovation with an ecosystem that enables ease and speed of development, the Algorand Foundation strives to anticipate and fulfill future technology needs.
The Algorand Foundation has contracted with Algorand, Inc. to begin development on several advancements to the foundational Algorand public blockchain.
VAULT™
Vault is a blockchain compression technology that allows new users to immediately join and participate in the Algorand network without a burdensome download.
View Whitepaper: Vault: Fast Bootstrapping for the Algorand Cryptocurrency
Algorand’s Forthcoming Technology, by Silvio Micali
PIXEL
Pixel is a new digital signature scheme built for Proof of Stake systems that reduce space requirements through committee member signature aggregation while maintaining forward-security through key rotation.
Pixel-signatures: Efficient and Secure Digital Signatures for Proof-of-Stake Blockchains
Algorand’s Forthcoming Technology, by Silvio Micali
SELF-VALIDATING TRANSACTIONS
Self-validating transactions are an advance that allows separation of consensus and storage to enhance the efficiency and the logical structure of the Algorand blockchain.
Algorand’s Forthcoming Technology, by Silvio Micali
ATOMIC² SWAPS
Atomic² swaps leverage Algorand’s instant transaction finality and implement same-chain swaps of assets, without any type of time- or hash-locks, in a single transaction.
Algorand’s Forthcoming Technology, by Silvio Micali
POST-AND-SALE TRADES
An exchange of assets usually requires interactivity: prior to delivering the asset, a seller must find a buyer and negotiate terms. Post-and-sale trade technology will allow any seller to post assets for sale, at a given price. Any buyer can browse these offers, pay the price and receive the asset immediately without having to interact at all with the seller or any third party.
Algorand’s Forthcoming Technology, by Silvio Micali
SMART² CONTRACTS
Smart contracts permit trusted transactions and agreements to be carried between parties around the world without the need of a trusted third party, but they can be slow and expensive.
Smart² contracts™ leverage Algorand’s consensus mechanism to offer faster and cheaper forms of smart contracts.
Partnerships and team members
They will work on new innovative smart financial products that will trade on its FCA regulated exchange. Archax — which became the first firm to receive FCA authorisation as a digital securities exchange, VASP, brokerage and custodian — is looking to create a range of bespoke regulated financial products to sit alongside its pipeline of more regular digital security issuances, such as equity, fund and debt instruments.
Also, read the related article on Cointelegraph, BraveNewCoin and an official announcement by Archax.
Since the Algorand Foundation launched its Grant Program this year, many developers and innovators around the world have been eager to participate. Bountyblock is the most recent grantee. Bountyblok is a gamification platform used by third-party applications to create challenges and tasks that can easily integrate with their existing product. Implementing gaming mechanics into applications highly motivates and promotes user engagement and thus is key for applications to not only maintain but also grow their user base and revenues.
[Key Token Facts]
- Planet is a utility token issued on the Algorand blockchain. Planets can be regarded as credits towards PlanetWatch products and services (both for consumers and corporates) or donated to support high-profile projects.
- The maximum supply of Planet tokens is 4.500.000.000, as a tribute to the estimated age of the Earth (4.5 billion years).
- The vast majority (95%) of Planets will be earned over time in return for valid sensor data. A small fraction (5%) is allocated immediately to PlanetWatch. This allocation will be mostly used to jumpstart the network and reward specific contributions (Ambassadors, technical bounties, PlanetWatch team, etc.).
[Planet Watch News]
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