Algorand’s technology features a set of high-performing Layer-1 blockchains that ensures security, scalability, complete transaction finality, built-in privacy, Co-Chains, and smart contracts that are indispensable in the advancement towards a Future-FI world.
What is Algorand?
Algorand, with its native currency, ALGO, is a public cryptocurrency blockchain and protocol. This cryptocurrency’s design is to bring about decentralization, scalability, and security among all participants. Algorand employs a permissionless proof-of-stake protocol. Thus, all ALGO holders are automatically qualified and eligible to participate in the full protocol functionalities, such as participating in decision making by proposing and voting on blocks, depending on the proportion to their stake, that is, how much ALGO they possess.
Algorand exercises a core philosophy that circles the principle of “democratic” user participation. With this in mind, Algorand aims to advance its upgraded Proof-of-Stake and self-validating transactions. This protocol is contrary to the mining-based, Proof-of-Work design that Bitcoin and other existing cryptocurrencies employ.
The Algorand project has set specific goals contingent on the implementation and execution of its concept and technologies:
Algorand is promoted as an open-door platform, meaning anyone can join without seeking approval from an officially appointed gatekeeper authority. With the openness that Algorand champions, its developers hope to cultivate a healthy exchange of ideas among various user profiles.
Algorand operates on the same principle as open-source software, housing a whole range of actors from small business owners, individual investors, and even large corporations, and having access to a permissionless blockchain.
Furthermore, distinct from a blockchain with permissions that may hinder the users’ innovation potential, Algorand allows its users to freely offer new market applications regarding ownership records that are publicly accessible on the blockchain. This permission should help Algorand build wholly innovative markets that do not just imitate their real-world counterparts but bring something new to the table.
Building a “Borderless” Economy
Algorand aims to make the bridge that links companies and organizations to relatively untapped markets. With Algorand’s technology featuring a decentralized, secure, scalable, and distributed ledger, this is made feasible. However, this would remain a vision and would count for nothing if the blockchain platform on which Algorand rests cannot perform adequately to keep abreast with this type of economy’s demands. Moreover, the Algorand blockchain provides immediate transaction finality, thereby eliminating the risk of forking or uncertainty based on its unique consensus algorithm.
Once implemented, each new block remains on the chain indefinitely, ensuring that all transactions on this blockchain are final. Upon the launch of the Algorand MainNet, the network reported a processing rate of 1,000 transactions per second, not far behind the performance level of mainstream payment networks such as VISA, which is reportedly able to handle an estimate of 1,700 transactions per second.
Recognizing Ownership Rights Over Assets
Secondly, at the core of Algorand’s Pure Proof-of-Stake protocol operation is recognizing one’s ownership rights over assets. This focus on ownership rights should make Algorand more readily acceptable in its planned financial industry implementation. Its Pure Proof-of-Stake is a unique consensus algorithm developed by Silvio Micali to succeed in this venture.
This Pure PoS also accounts for a significantly decreased demand for computing power as it can settle transactions within just a few seconds. Thus, the system can reach a consensus without necessitating the presence of a central authority. Plus, it has a tolerance for malicious users, as long as the bulk of the stakes are under honest users’ care.
Moreover, each user can read every block and has the opportunity to write a transaction in a future block. As established earlier, users can impact selecting a new block depending on the size of their stake in the system, that is, by the number of ALGO tokens they possess. Based on random selection principles, users are selected, allowed to propose blocks, and vote on block proposals, discreetly. No matter random, the likelihood of being chosen is still proportional to the user’s stake volume.
As the project proves viable over time its distribution will highly depend on the use cases built by developers joining the blockchain platform (as smart contracts in specific industries are the key value proposition to the Algorand project) To sustain its development bya core team the more it will attract now investors that are willing to sustain that the more it will become viable over time. Thus in this phase it’s critical for Algorand to keep its core development team aligned, while involving a developer’s community and investors.
Read Also: Proof-of-stake, Proof-of-work, Bitcoin, Dogecoin, Ethereum, Blockchain, BAT, Monero, Ripple, Litecoin, Stellar, Dogecoin, Bitcoin Cash, Filecoin, TRON Blockchain, Chainlink, ETHO Coin, Uniswap, Polkadot, Dfinity, NEO.
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