Algorand and the Blockchain Trilemma - Crypto Academy / S5W4 - Home work post for @nane15 || Entry by @basky14
SourceGreetings every one trust you all are doin just fine? welcome to my blog once more am glad to submit my assignment Algoran Blockchain lectured by @nane15.
Algorand is a blockchain network that is secure, scalable, and decentralized. The Algorand network makes use of smart contract and its consensus mechanism is built on pure proof of stake protocols and Byzantic Agreement Protocol. Its purpose was to be a payment-focused system with a fast transaction and achieving instant finality. Algoran gives access to developers to make use of the Algorand Standard Asset (ASA) protocol new coins or transfer coins that have been in existence in the Algorand ecosystem.
PoS consensus mechanism has been doing a great job in solving scalability issues, they still can be monopolized by users with high amounts of token. To solve this problems, the Algoran blockchain develop Pure Proof of Stake. The Algoran blockchain is the first to make use of the pure proof of stake consensus protocols which is use to process its blocks and keep the network going. The PPoS system was built on Byzantine protocol where users with a token can influence the system depending on the user's stake in the system. The system selects the users who staked their token randomly despite their stake.
It improves the decentralized quality of a blockchain and gives maximum security
There chances for users to be selected, propose and voted for
It does not allow its users to solve puzzle so as to propose or confirm blocks
It has low cost both in computation and in financial transactions
It allows developers to create a new token with the aid of Algorand Standard Assets
It is fast and flexible
There is no proper security from security perspective like proof of work
There are too much competitions with other blockchains based on flexible smart contract
There are no much liquidity for Algorand on exchange platforms
The blockchain is a wonderful invention. It's existence has been tremendous like that of the internet itself but the blockchain has it's own challenges. The three challenges the blockchain has been facing over the decades also known as blockchain Trilemma which are security, scalability and decentralization.
The Algorand has tried to find a solutions to solve the three challenges facing blockchain without any compromise. With help of Algorand founder by name Silvo Micali who is an expert in cryptography and computer science brought a solution to the blockchain Trilemma by introducing Algorand Blockchain.
Thanks to the Algorand blockchain which uses the pure proof of stake so the network bind it's security to the truth of the majority to compare PPoS with DPoS and BPos that there is nothing like sanction mechanism. Incase a user misbehaves or try to validate a block twice in Algorand instead of punishing the user , Algorand made cheating by a minority of the money impossible as far there is 2/3 of honesty the protocol will work very well.
My answer is yes. My reasons are, In Proof of work it needs users to solve cryptographic puzzles to get rewards and solving this puzzles, it needs a high computational power, it is not flexible, it drains a lot of energy, slow in transactions and PoW is expensive. But it is not so in PPoS. PPoS does not need a high-cost hardware to mine and it doesn't need high cost of electricity to participate in mining and in the aspect of cryptographic lottery, all users gets equal chance to initiate a block.
To me i think PPos IS better than PoS. My reasons are in PoS consensus mechanisms your stake will determine if you will partake in the mining or not. There are also fixed numbers for validators and a user with a higher stake has a good opportunity to produce blocks. But it is not so in PPoS. There are no fixed numbers for validators and everyone can participate in mining and there is nothing like penalty or lock period and also there are no groups of sepecial validators making it for hackers to compromise.
To explore Algorand blockchain, we have to visit the Algorand website algoexplorer.io The image below shows the homepage of the Algorand blockchain where the current price, numbers of users, cost of operations, latest blocks, latest transactions and so on are displayed.
To see an Algorand transactions, click on he blockchain button, then click on view transactions an interface will display showing you the list of transactions going on the Algorand blockchain click on any transactions.
You can see the the transaction ID, Timestamp, Type of Transactions and Transaction details, the Sender and its information. it is very important to know this information so as to help us to operate the ecosystem very well.
Login to the web site and click on statistics top statistics.
Early this year the Algorand price was low and went up in september but has been having some ups and down till now. Today as at the time i was writing this post the Algo dropped to -1.37%,
The use of PPoS has made this system so efficient, secure and sufficiently decentralized. it's block might reach their final state in seconds and it's transaction through put will be comparable with large financial networks. No matter what, this project will not lack the attention of the market and it's key factor is feasible.
Thanks to @nane15 for this lecture i must say i have learnt some new things in the cause of writing this assignment. Thanks for your support
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