BLOCKCHAIN INNOVATION AND DEVELOPMENT
Almost everything humans do involves the creation and movement of data. The blockchain is an entirely new way of storing and moving that data, wherein instead of holding the data in one place, the information is spread over thousands of nodes across a network. First implemented in 2009, Blockchain consists of ‘blocks’ that hold batches of timestamped transactions, with each block linked to the previous one through cryptography, thereby forming a chain.
The blockchain gives its users a digital ledger of transactions anyone on the network can see using cryptography to keep exchanges secure. Before an exchange can be verified and recorded, this network, essentially a string of computers, has to give its approval. This provides adequate security for users as most transactions done over the internet are not secured.
Blockchain technology has come to disrupt the traditional ways by which humans do a lot of things. This disruption is not limited to the financial sector only. In Dubai, for instance, the government wants to start using blockchain this year in over 100 million government documents, including all visa renewals, bill payments, and license renewals. According to estimates, Dubai’s government could save 25.1 million hours of work, or $1.5 billion, each year by using blockchain.
One would then ask; why is Blockchain important? The blockchain is important because the centralized systems we have in place have a number of shortcomings including the lack of trust due to the non-transparent nature of the centralized system, exclusion of billions of people due to a highly sophisticated system, and slow transaction processing speed, etc.
HOW ALGORAND IS FACILITATING BLOCKCHAIN INNOVATION AND DEVELOPMENT
There have been a number of technical barriers which have for years undermined mainstream blockchain adoption. These barriers, which range from lack of true decentralization to lack of scalability and security, have all been solved by Algorand. Withy Algorand, users can now build on a stable platform they trust.
The consensus mechanism used by Algorand is permissionless, pure proof of stake. It ensures full participation, protection and speed within a truly decentralized network. With blocks finalized in seconds, Algorand’s transaction throughput is at par with large payment and financial networks. Meanwhile, Algorand is the first blockchain to provide immediate transaction finality.
With Algorand, the era of a decentralized, borderless economy is just starting. In the past, regardless of how fast the underlying communication network is, Bitcoin and other proof of stake projects produce blocks slowly. However, because Algorand’s blockchain does not fork, Algorand produces blocks as fast as it can be circulated throughout the network.
Simplicity, they say, is the ultimate sophistication. Therefore, Algorand makes it ridiculously easy for users to engage with its platforms. This gives way to broader participation by people, reliability, and trust. To be effective, a solution needs to be simple and not simpler.
Algorand is also solving the storage issue faced by various projects. Even blockchains that produce a block only every 10 minutes will ultimately consist of more than a terabyte of data. Downloading such cumbersome data by new users to catch up to the blockchain usually proves challenging. The way traditional blockchains handle the storage and retrieval of blocks does not scale for a decentralized architecture and will ultimately prevent the growth of a borderless economy.
Algorand’s vault system provides a unique solution to these problems. Efficient onboarding of new users makes it vastly simpler for new nodes joining the network to participate in the generation of new blocks, and efficient and provable block retrieval enables a user to store the entire blockchain to provably provide the content of any past block, in full or in part.
CASE STUDY OF THE ALGORAND EUROPE ACCELERATOR
As part of efforts to ensure that the Blockchain technology is all-inclusive, the Algorand Foundation launched a Europe-focused program aimed at funding and developing startups working atop its proof-of-stake blockchain. According to the Foundation’s press release, the program is supporting early-stage start-ups with seed funding and encouraging blockchain development in the region.
The program is funded jointly by Eterna capital and Borderless capital. While an initial $15,000 upfront seed amount from Borderless Capital has been provided to start-ups entering the program, additional funding of up to $500,000 in additional investment may be given to eligible projects from both Borderless and Eterna.
Massimo Morini, Chief Economist at the Algorand Foundation, mentioned that in addition to funding, “the program will offer developers and entrepreneurs an array of tools and resources for building decentralized applications”. Startups will also be assisted with their go-to-market execution, marketing, fundraising, token economics, and general guidance.
All the above are in a bid to ensure that start-ups working with Algorand’s proof-of stake blockchain are given all the requirements for them to thrive and succeed in the Blockchain world.
Algorand has come to change a lot about the way things have always been done in the blockchain world. This is the case with the Algorand Foundation’s Europe accelerator program which is ensuring that start-ups working with Algorand’s pure proof-of-stake protocol succeed in the market.
The Algorand Foundation does this by providing these companies with the necessary funding and other support they require. Algorand also make sure that its pure proof-of stake blockchain is the best in the market by ensuring that other problems faced by competitors are reduced substantially or totally on its platform. Thus, dApps developers and other blockchain users can utilize the Algorand blockchain in facilitating the building of DeFi apps and the execution of transactions.