In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
Exchange of value has never been this easy. Algorand is among the first crypto projects to integrate DeFi protocols with the traditional financial modules. The platform plans to introduce revolutionary financial products that could improve the basic economic modules in the Fintech industry. And, the Pure Proof of Stake mechanism is at the center of the project.
In its very acclaimed blockchain, Algorand is a project touted to kill Ethereum. As the title suggests, the platform has numerous unrealized potentials, game-changer in the crypto space. For starters, transactions on the blockchain are cheap, faster, and more environmentally friendly than Ethereum.
Read on, and find out the immense potential of Algorand! Also, discover why the project is in a pole position to overtake Ethereum as the premier smart contract platform.
Brief Overview of Algorand
Algorand is a decentralized, scalable, secure, permissionless blockchain to build a scalable, sustainable blockchain ecosystem. Algorand leverages its proprietary consensus mechanism, a variant of proof of stake, Pure Proof of Stake (PPOs) algorithm. MIT Professor Silvio Mical, an award-winning computer scientist and cryptography expert, developed the PPOs algorithm.
By leveraging PPOs, Algorand solves one of the significant challenges of blockchain technology, i.e., the Blockchain Trilemma problem. To put this in context, Algorand facilitates the creation of fast and scalable crypto projects while maintaining decentralization.
While Ethereum is secure and decentralized, it suffers from scalability issues, processing only 20 transactions per second (TPS) compared to Algorand’s 1,000 TPS. In Ethereum and other prominent smart contract platforms, security and decentralization come at the cost of scalability. Algorand solves these challenges by attaining an outstanding balance between scalability, safety, and decentralization.
Apart from solving the Blockchain Trilemma challenge, Algorand employs a low transaction fee system. And, it achieves it by minimizing the computational cost of blockchain participation. In summary, Algorand is a secure, scalable, and decentralized blockchain platform charging low transaction fees. It has several use cases in the crypto finance space, including decentralized finance (DeFi), tokenization, NFT creation, stablecoins, and payments.
Why Algorand Has So Much Potential
The future of Algorand lies in its unique consensus algorithm, i.e., Pure Proof of Stake (PPOs). This feature enables it to become the sole public blockchain platform able to solve the Blockchain Trilemma. And, it should achieve greater scalability without trading off the decentralization and security of the network.
The PPOs algorithm enables every ALGO holder to become the block validator by staking tokens to the Proof of Stake (PoS) platform. However, unlike PoS, Algorand’s PPOs algorithm randomly and furtively chooses block validators for every new block added to the chain. As such, all block validators on the network have an equal chance of being selected by the system, allowing the network to be fully decentralized, scalable, and secure.
By leveraging the PPOs consensus, Algorand has immense potential, including:
A Solution to Blockchain Trilemma
Currently, Algorand is the only blockchain platform to solve the Blockchain trilemma thanks to its innovative Pure Proof of Stake PPOs consensus algorithm. PPOs algorithm enables the Algorand platform to achieve consensus without a central authority and prevent malicious actions on the network by selecting users to take part in the certification of blocks random and secretive. The next block validator is only known when the next block comes into play.
The block validators change after every block generation to prevent malicious attacks. Additionally, the platform achieves security by preventing forks. In summary, Algorand offers complete decentralization and outstanding scalability while still preventing security threats such as 51% attacks.
The Algorand ecosystem is scalable thanks to the PPOs algorithm. The platform can process over 1,200 transactions per second (TPS) and focuses on 3 000 TPS once the instant finality occurs. Algorand is also set to introduce block pipelining-a feature to boost the transaction speed to a whopping 45, 000 TPS-more scalable than Visa. Its immense scalability makes it ripe for the future of finance.
Algorand offers an unmatched level of security owing to its consensus algorithm. Apart from being an unworkable blockchain, its randomness and secretiveness in selecting block validators make it immune to malicious attacks such as 51% attacks.
Another Algorand’s outstanding feature is its fast throughput blockchain that can handle millions of transactions per day. Network congestion and costly delays have no place in future finance, especially if Algorand is in the picture. Since block creation on Algorand takes less than five seconds, all transactions on the platform attain immediate finality, providing plenty of conveniences and lowering risks to both parties.
Low transaction Fees
Algorand has immense potential in the crypto-financial space owing to its low transaction cost. It creates a user-oriented financial ecosystem with industry-low transaction costs ensuring that the end-users don’t bear all the transaction costs.
SIAE (Società Italiana degli Autori ed Editori), the most prominent copyright agency in Italy, paid around $40-$100 only from minting to understand how low the transaction fee is on the platform millions of NFTS using Algorand.
Environment Friendly and Sustainable
Algorand is keen on environmental conservation, unlike most crypto projects. That’s because the platform doesn’t support mining, thus doesn’t pose any carbon footprint. Even better, Algorand has struck several partnerships to develop a standard for blockchain sustainability and has also committed to becoming carbon negative.
Ostensibly, Algorand seems like just any other ambitious blockchain project with good scalability, security, decentralization, and low transaction fees. But a deeper look at the project makes you realize it has so much potential.
Due to its proprietary Pure Proof of Stake PPOs consensus algorithm, Algorand has solved the Blockchain Trilemma challenge. This way, it created a truly decentralized, scalable, secure, and sustainable blockchain ecosystem that can support a wide range of current and future finance use cases.