Algorand - A True Permissionless Blockchain - Introduction.

bob-elr (56)in #algorand • 5 years ago (edited)

The chance of achieving milestones that outperform existing second and third generation blockchains is infinitesimal if true decentralization is not considered.

A truly decentralized network ensures absolute participation where protection is highly prioritized and speed is not retarded. A brief review of Algorand Blockchain will explain the above concepts.

The whole Algorand's technological idea is to eradicate all known technical blockages to wide adoption of blockchain technology. Many scholars believe that Blockchain is still in its early stage while some hold the fact that the technology is fantastic and should by now be integrated in businesses, schools, enterprises and government decision. Undoubtedly, there are barriers undermining blockchain mainstream adoption which include - Scalability, Decentralization and security, all based on the protocol, accessibility and consensus mechanism adopted.

Algorand as a platform whose targets is to uphold the true concept of decentralization by creating a technology that enables frictionless finance(both traditional finance and decentralized financial businesses. According to here, Algorand is a technology company that built and developed the world’s first open, permissionless, pure proof-of-stake blockchain protocol that, without forking, provides the necessary security, scalability, and decentralization needed for today’s economy.

Improving over existing blockchains in decentralized finance requires rigorous research to creating a decentralized, borderless economy as Algorand rightly did. Watch the video here

for description of borderless economy by the Algorand leadership team.

The ecosystem of Algorand provides a wide range of benefits and resourceful to businesses(individual and enterprises) and developers.

A quick look at Algorand' s Consensus Model

Algorand is a permissionless blockchain network that allows full participation without a central authority initiating an on and off access. Anyone is free to join and contribute to the network since it is open source. Users who are willing to join Algorand do not need any form of approval from a constituted authority to do so. As a user, you are have access to push transaction in subsequent future block.
Since the network is free of central point of authority, it is pertinent to have a way of harmonizing decisions among the participants of the network to arrive at a decision. Everyone joining the network can participate in decision making based in the amount of their holdings (ALGO) which is used as a means of fueling the network. Holders of Algorand's token are considered part of the decision makers. Their contributions is proportional to the amount of $ALGO they hold as a given. This mechanism is termed Pure Proof of Stake (PPoS) in Algorand ecosystem. However, arriving at a decision to add a block to the running chains is done using same algorithm but is done by secretly selecting a committee at random to approve every block in order to avoid unfair practices by giant holders who may want to exploit the system with their wealth.

Using this model instill transparency, speed and security in Algorand's truly decentralized network since control is spread among all participants.

Smart Contract Development Platform

Like other blockchains, Algorand supports smart contract development. The platform provides developers a robust solution to building for instance decentralized financial or business applications with ease. It's open source makes it simple for developers to build and deploy ideas on blockchain. Unlike Ethereum with perhaps only solidity a major programming language (also with Vyper but still under development), developers of traditional applications can leverage on existing programming languages such as Java, JavaScript (using node.js and browser) and Go software development kits(SDKs), REST APIs and a great deal of collaboration tools and developers resources to build high performance decentralized applications.

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Watch out as I will be releasing more articles to further enhance understanding of Algorand ecosystem.