Sharing a vision for a better world and allowing people to interact with trust and security built on blockchain technology
Blockchain was born out of an ethos which was to empower people and the activities required to conduct daily life. This vision of the future was to make daily life safer and more inclusive by removing the need for centralised entities which ultimately could be a single point of failure.
Algorand’s scientific solution pure proof of stake is one way in which this new global infrastructure for trade and a trusted layer for device transaction (IoT) can be built and deployed. This foundational layer will create a new global open infrastructure at scale without losing integrity or the computational power required to transact at a worldwide scale.
Blockchain’s key principles
While blockchain technology can be used in many areas of society, a blockchain solution generally holds to these key principles; tamperproof, transparency and trust.
- Tamperproof — every transaction (a digitalized version of a physical asset) stored on the blockchain is secured using a unique mathematical code (cryptography) and this virtual signature cannot be changed.
- Transparency — single, public ledger that can be read by everybody, in which everybody can write, but nobody can alter. In a world that is starting to demand greater accountability from our custodians this layer of transparency with security should be viewed in a positive light for business growth with enhanced integrity and ethics.
- Trust — Digital assets are not stored on a central database but distributed across a global ledger using the highest level of cryptography. The ledger entry cannot be changed without the correct protocols thereby creating virtual trust without a centralised platform.
Algorand’s Pure Proof of Stake Blockchain Solution
The Pure Proof of Stake consensus offers a blockchain solution that is:
- Public and permissionless
- Open source
- All users can participate in the consensus
- Blocks are confirmed by voting
- Every token carries the same voting power
- No need to delegate or bond
- Minimal compute required
The innovative Algorand blockchain solution founded by Professor Silvio Micali solves the blockchain trilemma which states that only 2 out of the following 3 properties can be achieved; speed, scalability and decentralisation. Yet, to achieve mainstream blockchain adoption, all 3 elements are required.
Without security, blocks of transactions can vanish and the public ledger may be tampered with by adversaries to their own benefit.
Without decentralisation, the financial system that exists today cannot be re-imagined. There is a need to remove the current barriers to entry that prevent millions of people without access to banking services to take part in the economy. It is estimated that 1.7 billion adults remain unbanked, yet two-thirds of them own a mobile phone that could help them access financial services.
Similarly, without scalability, you would only be able to transact with a small network and you could not participate in the global financial system or compete with current centralised services in the market today.
Solving the blockchain trilemma allows Algorand to implement a technically advanced blockchain infrastructure with speed equal to many operating financial networks today but with added efficiency, for example, in trade finance, a transaction can be completed in minutes instead of days, reducing the financial outlay required by companies and individuals in transaction fees. It is currently estimated that $4 trillion is spent every year in transaction fees.
At a high-level, the problem was solved and built-in from the ground-up. Firstly, committee members are not known until the transaction is complete. This secure anonymity means that an attacker cannot compromise any single participant and therefore compromise the network.
The Algorand blockchain does not fork which means every block is final. Algorand’s Byzantine agreement protocol scales and sustains a high transaction rate which requires minimal computation power and the blocks are finalised within seconds.
As Algorand is open source, actively encouraging community participation and developer education it means that the roadmap and testing of the Algorand blockchain is dynamic and part of this future generation of blockchain solutions.
Algorand and Enterprise
With security features built-in, speed to block finality, no forking and global scale, Algorand not only enables new entrants to participate in the economy on a macro-level without the need for a centralised product or company, but also enables legacy businesses to re-imagine their current business models. Thereby enabling new revenue generating solutions to be built on top of this foundational infrastructure blockchain technology.
The team behind Algorand is passionate about ethics, inclusion and innovation the emerging pillars of the changing economic climate evolving today.
Algorand’s roadmap of innovation and technology development is excellent and the new features, such as, Vault a much-needed solution to the growth rate of data on the blockchain. Vault is a compression technology that minimises storage and facilitates joining the Algorand network.
Algorand stays ahead by not only having a great scientific, developer, economic and business team leading the charge but also by keeping their blockchain code open sourced, which means that everyone can participate in the development.
Solutions built on Algorand’s blockchain technology
As you can see from the table below Algorand’s innovative blockchain enables participation from both individuals and enterprises in the emerging economy, using their blockchain technology and the secure applications that can be built on top.