Algorand is a permissionless public blockchain that uses Proof-of-Stake (PoS) with layer-1 solutions that finalizes transactions almost instantly and provides high throughput. It is the world’s first blockchain to provide immediate transaction finality and to use pure Proof-of-Staking. No forking. No uncertainty.
The Algorand platform was founded in 2017 by Silvio Micali, a professor at MIT. Its development is overseen by Algorand, Inc., a private corporation based in Boston. The Algorand platform supports smart contract functionality and a Byzantine Agreement protocol. Algorand’s native cryptocurrency is called Algo.
Algorand solves three key problems affecting mainstream Blockchain adoption: Decentralization, Scalability and Security.(The Blockchain trilemma)
The Algorand blockchain is completely decentralized(there is no central authority). A unique committee is secretly and randomly selected to approve every block and to approve every decision on the Algorand blockchain.
Algorand uses a pure Proof-of-Stake consensus protocol built on Byzantine agreement . This means that users can reach a consensus without a central authority. It also tolerates malicious users as long as a supermajority of the stake is in non-malicious hands.
The consensus mechanism is permissionless and every user with an Algo balance can participate. It ensures full participation, protection, and speed within a truly decentralized network.
A Blockchain network’s ability to support high transactional throughput and future growth is known as Scalability. Algorand, through Layer 1 solutions addresses the issue of Scalability.
Layer 1 solutions change the rules of a protocol directly to increase transaction capacity and speed while accommodating more users and data. Algorand Smart Contracts 1 (ASC1) can operate at over 1,000TPS which are final in under 5 seconds on a platform to Blockchain.
With this, Algorand’s transaction throughput is on par with large payment and financial networks.
The Algorand blockchain is fault tolerant(due to the Byzantine agreement), with no special group of users for an attacker to target. It is also very transparent.
The Algorand node repository is open and public. Anyone can audit,use and build on it. Algorand platform allows users to carry out transactions for as low as 0.001 algos. Transparency, inclusivity and collaboration are maintained principles on the Algorand platform.
Usecases And Projects On Algorand
Algorand usecases are vast, ranging from entertainment to infrastructure, securities, supply chain, Identity, stablecoins, government and public sector, insurance, environmental, gaming, DeFi, financial institutions and digital assets. Over 55 projects have been built on the Algorand blockchain, here’s a list of 10 projects to watch for:
- CIRCLE: This is a global financial technology firm that enables businesses to harness the power of stablecoins and public blockchains for payment, commerce and financial applications worldwide. Circle’s USDC is the fastest growing full-reserve stablecoin in the world, with 2.3 billion currently in circulation.
- ALGOFI: Algofi is a fast, low-cost crypto lending market on the Algorand blockchain that makes decentralized lending broadly accessible. It intends to offer more traditional banking sources like savings accounts and credit cards, all powered by Algorand’s DeFi ecosystem.
- TINYMAN: This is a reimagined decentralized trading protocol, utilizing the features of the Algorand blockchain to create an open and safe marketplace for traders, liquidity providers and developers. With the community-focused, cheap, fast and permissionless Tinyman protocol, users are able to trade any Algorand Standard Asset(ASA) through liquidity pools using an Automated Market Maker (AMM) algorithm.
- YIELDLY: Yieldly is the world’s first borderless and interconnected DeFi platform, designed and developed on Algorand. Its mission is to connect the next one billion crypto users to exchange digital value without friction, gas inefficiency or security risk.
- OPULUS: This is a pioneering peer-to-peer platform that intends to help increase artists access to capital without the need for traditional institutions such as the banks. It is being created by Ditto,the award winning global music distribution and record label services company.
- VERITX: VeriTX is a digital commerce marketplace for assets, particularly in the Aerospace and Medical parts industries. It integrates its supply chain with Algorand blockchain to be able to track parts from order to delivery.
- ASSETBLOCK: This focuses on tokenizing real estate investments. It uses Algorand to record related information, proof of loan transactions and key loan documents.
- CHAINANALYSIS: Chainanalysis provides blockchain data and analysis to government agencies, exchanges and financial institutions across 40 countries. Its compliance tools helps reduce scam, illegal darknet market activity and attacks against blockchains.
- DUST IDENTITY: DUST identity is the creator of the Diamond Unclonable Security Tag(Dust), a technology utilizing nanoengineered diamonds to create an unclonable identity layer on any object. It is the only supply chain solution that ensures that trusted data and verifiable products are used and traced across their full life cycle , enabling end-to-end traceability.
- ORION PROTOCOL: This aggregates the liquidity of the entire crypto market (CEXs, DEXs and swapping pools) into one decentralized platform.
Continuing technical innovation and development on the Algorand blockchain is focused on:
Private and Public Models
Performance and Scale
Layer-2 Smart Contracts
Unconfirmed news has it that 2022 is a big year for Algorand. Stay on Algorand projects and watch this space.
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