Algorand 101
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Introduction:
Algorand (ALGO) is a blockchain that is fast, secure, and decentralized. Algorand was founded by Silvio Micali, who has been on the faculty at Massachusetts Institute of Technology in the Electrical Engineering and Computer Science Department since 1983. He is still currently researching cryptography and is an industry leader in blockchain implementation.
A full history of Algorand can be found here:
The Blockchain Trilemma:
Micali developed Algorand to solve what is known as the Blockchain Trilemma. The three parts of this concept are:
- Transaction Speed
- Security
- Decentralization
- When dealing with the blockchain trilemma, you can see two out of the three issues being implemented, but not all three at once, on a single blockchain.
Pure Proof of Stake:
This is Algorand’s consensus protocol. The consensus protocol is how all the nodes on the network reach an agreement about what is stored in each block. Older blockchains use the proof of work model, and when you deal with the blockchain trilemma, it isn’t the fastest or most scalable. Transactions can take up to an hour, requiring several confirmations to be considered finalized. Algorand’s pure proof of stake model solves this issue. It is scalable, un-fork able, all while providing instant confirmations. By simply holding Algorand, you receive staking rewards. It is as simple as that.
Algorand is verified un-fork able:
Algorand will never fork. It can not happen. This means that transactions are final and can never be reversed. Only one block at a time can be confirmed, so the transactions are instantly final.
The future of Algorand:
There have been four major upgrades since Algorand’s launch in 2019.
These are:
- Support for fast low-cost smart contracts
- A layer 2 solution for cross-chain interoperability within smart contracts
- Support for Atomic Swaps
- Creation of fungible and non-fungible tokens via the Algorand standard asset (ASA).
The Algorand team hopes that developers and organizations around the world will use Algorand to bring transformative financial applications for underserved people around the world. To put it simply, they care about you and want to help. This is why I choose Algorand.
If you are interested in Algorand please visit their official website: https://www.algorand.com/
Algorand’s white paper: https://arxiv.org/abs/1607.01341
