STEEMIT CRYPTO ACADEMY:: HOME WORK POST FOR PROF. @nane15:: ON ALGORAND AND BLOCKCHAIN TRILEMMA:: BY @gi-de-on
Greetings everyone
INTRODUCTION.png)
[edite in canvas]
Warm welcome to everyone, it is with joy in my heart I am participating in this weeks’ homework post. All thanks to prof. @nane15 for this very wonderful lecture. For this weeks’ homework post, we would be talking about `Algorand blockchain. Just like the Bitcoin Blockchain created, there are hence another which has some functions as that of the BTC blockchain. Hence there is one common feature which there has which is their Decentralized nature. Hence, details of the Algorand Blockchain will be discussed in full in the subsequent paragraphs below.
What is Algorand blockchain?
The term Angorand is simply a blockchain project which was founded in the year 2017 by Silvio Micali. The Angorand Blockchain has been a decentralized system that simply supports what is known as the smart contract. This is simply a written program with instructions in it that enables the functioning of the Angorand blockchain as applied to other decentralized systems.
Being a decentralized system, it can link all its users provided there are connected to the internet. Just other decentralized systems which give their users the leverages to be an authority on their own, that is also applicable here, the Angora Blockchain allows its users who own Angorand the leverage of creating the next block no matter the volume or amount of the coin been held. And once these blocks are created it is simply open to everyone for full participation as long as the user is connected to the internet.
Furthermore, the Anbgorand blockchain is referred to as a cryptocurrency platform that simply allows its, users, the leverages of performing transactions on a more scalable, fast, secure, and above all on a decentralized system. Since the Angorand functionality is based on the smart contract as a decentralized system it algorithm is simply a derivative of what is known as Pure Proof of Stake.
What is PPoS?
PPoS is an abbreviation that stands for the phrase Pure Proof of Stake. This majorly is seen as the algorithm in which the Angorand Blockchain uses to run transactions, create blocks, and also keep the system running. Through the initiation of this protocol, the users of the blockchain are therefore provided with the leverages to participate in block creation and other activities been done on the blockchain.
image source
Also, not leaving behind the fact that it is through this PPoS protocol that simply allows the blockchain to have access to be fully decentralized. In the processing and creating of these blocks in the Angorand blockchain, this is made possible and achieved through the consensus which is divided into two different parts.
- The Proposal phase/the block proposal phase.
- Voting and certification phase of the block/the block finalization phase.
The proposal phase simply implies that all users who own an ALGO token no matter the amount are therefore eligible to create a block. This is made possible through the PPoS which represents a single token. Hence, this is based on probability where one user is going to be picked/selected at random to create the block irrespective of the amount of ALGO token he/she holds.
It would interest you to know that the selection process of this user, is done through what is known as “cryptographic sortition” which simply means the absence of central authority. This is to say that there is nobody or group of persons or authority who is in control of this selection or who is in charge of disseminating information. The system is a decentralized blockchain that has eliminated central authority and also middlemen in transactions.
Secondly, the voting and certification phase or the finalization phases simply have to do with the act/process where some group of users are been elected as a community to oversee the validation of the created block. This is done by selecting several 1000 tokens and any token user has been selected as will simply have the voting power equivalent to the number of tokens he/she owns among the 1000 tokens chosen, hence, there can now be decwhetherether the block be verified or created.
Explain the advantages and disadvantages of PPoS.
There are various advantages of the PPoS as well as disadvantages, this would be listed and explained in the subsequent paragraphs below.
ADVANTAGES
The PPoS concept was simply developed to eradicate the Rich Getting Richer concept as it is seen with the PoS. This is one very important point to make. Through the random selection of various holders of the token irrespective of how many a user holds, the system simply made it to be fair where everybody is having the chance of being selected.
One major advantage is simply referred to the goal of the PPoS which is indicated to have been created to eradicate blockchain trilemma and set up a blockchain system that can stand to serve in the advancement of the world daily.
A highly scalable system: This has simply become successful based on the fact that the system has to do with what is known as unity. Whereby all the users participate and therefore agree if the block is to be created or verified. With the high scalability of the system, it is capable to perform a large number of transactions of two thousand (2000) per second.
The blockchain is a decentralized system that also gives its users equal right to participate and also create blocks.
There is a high level of security in the decentralized system which helps protect the system from malicious attacks and protect them also from hacking.
DISADVANTAGES
Despite the high-level security in the blockchain ecosystem, the system does not properly address the issue of malicious behavior. This can be seen as when individuals are staking their token, there might be staking this token intending to do something that might affect the serenity of the blockchain.
In the PPoS, there is a situation where founders and developers have a larger amount of the token/stake and also a long vesting period.
On the other hand, stackers of these coins might be staking their tokens with the mindset of getting more money from it. this is to say users stake their tokens with eh mindset of amounting to a larger amount of profit.
Do you think Algorand really solved the blockchain trilemma? Explain your answer.
For me, I will say a YES to this. Below is the reason for my answer.
From the advantages of PPoS above you will notice there is a point there where is said:
“One major advantage is simply referred to the goal of the PPoS which is indicated to have been created to eradicate blockchain trilemma and set up a blockchain system that can stand to serve in the advancement of the world daily.”
From that being stated the way it is, you will notice that Angorand blockchain has tried a great deal to solve the problem of blockchain trilemma. That mentality of the rich getting richer from the POS aspect has been so far combated by the PPoS. You will ask how. These are things we have been talking about from the start of this lesson is one major reason for the creation of Angorand is simply to combat that aspect of staking that is done by users who only hold a larger amount of tokens. Since the advent of the Angorand blockchain, it is, therefore, possible for users to have equal rights in voting and hence been chosen to create blocks and also verify transactions. With the random selecting of users irrespective of the amount of token being held by a user, the Angorand Blockchain has simply made that possible and hence for me I will say this is the true meaning of a system being decentralized. Where no user is limited or held back because of the amount of token he/she has in their possession.
With this said, I will say that the advent of the Angorand Blockchain has solved the problem of the Blockchain Trilemma. This is said not in critics of the Blockchain Trilemman nor favor of Angorand blockchain for there is nothing without flaws hence you will agree with me that Blockchain trilemma is widely used and most compared.
Do you think PPoS is better than PoW? Explain your answer.
I will not just jump to a conclusion to ride one-off like that. For before the advent of PPoS the PoW had been in existence but that does not count for me. If I am to choose is will go for PURE PROOF OF STAKE. The reason has been that in the pure proof of stake, all users are seen as equal, and hence no matter the amount of token you hold, you have the leverage of being chosen to verify, vote, and even create the block.
This is one big achievement where even a newbie who just joined can simply be picked and this would be a big turn up for the individual. Being able to stake your token for rewards I would say is better. The pure proof of stake only requires you to hold a token in your possession and then you can simply be picked either to create the blockchain or to be in the community of moderators.
On the other hand, the proof of work requires a large amount of energy for transaction completion, mining and others. Hence, the proof of work as early said, needs a larger amount of energy for participation and also requires the members to use their efforts in trying to solve the given problem before there are all cleared to run the nest given task. I find this quite bored and time-wasting.
Why not stake the tokens in your possession relax and watch them grow you the profit you need. To wrap this up I will conclude by saying that the PPoS is less risky to malicious attacks or anyone trying to run a corrupt program on the network for it has a well-structured method of compensating/rewarding its users and paving ways for ways that makes the attack less effective.
Do you think PPoS is better than PoS? Explain your answer.
The PoS allow users who only had a high amount of tokens in their possession before there could freely participate without any disturbance from anywhere. This had been the case not until the advent of PPoS which allows all users as far as they are connected online to freely participate in the activities of the blockchain without restrictions.
Hence, users who have/have very little token in their possession can participate in voting, block creation, etc without restrictions as far as such individuals have been randomly chosen through the method known as cryptographic sortition which indicates the absence of a central authority to make decisions for users. Hence, PPoS has added more meaning to the meaning of what decentralization means in a blockchain ecosystem.
Explore and explain an ALGO transaction using algoexplorer.io (Screenshots required)
EXPLORING A TRANSACTION USING ALGOEXPLORER.IO
In exploring the algoexplorer we go to algoexplorer.io where on the main page, information related to the cryptocurrency are being displayed.
[screenshot taken from https://algoexplorer.io/]
In the box at the right-hand side of the desktop, we can see the latest transactions processed, we select one to continue.
[screenshot taken from https://algoexplorer.io/]
The relevant information such as the Transaction ID, Timestamp, Block number, the Sender and Sender information are been displayed for us to see.
[screenshot taken from https://algoexplorer.io/]
Carry out an analysis of the price of ALGO from the beginning of the year to the present. Via graphics (screenshots required.)
The Algo token which has its price to be $1.68 for today been 8-Dec-2021 has been undergoing a bullish trend in recent times. Hence, below will be a detailed analysis of the price of the ALGO token from the start of this year 2021 till date.
Using the MACD indicator, from the 1st of January early this year the ALGO token started undergoing a bullish trend and this trend lasted for 6 days. Hence there was a pullback in the price which was minor though. But since the trend bullish trend started from the very first day of January, it was never under a bearish trend until the 12th of February. All this is shown in the chart below.
[screenshot from tradingview:https://www.tradingview.com/chart/qKhefbtW/]
From February 12th to February 2rd of 2021, the ALGO token had a downtrend from the previous uprise of the token. The token further continued in the trend up the level it would rise and then drop this and rise and fall of the token simply formed a structure which is known as Rectangle structure/pattern which is in form of a zig-zag pattern and then latter further downtrend.
[screenshot from tradingview:https://www.tradingview.com/chart/qKhefbtW/]
From 22nd January 2021 to 6th September 2021, the token undergoes a struggling stage, the token held a resistance level up to the 6th September where it had a breakout, and then came a bullish trend. The bullish trend lasted from 6th of September to 13st of September where the downtrend of the token started and then had a false breakout on the 22nd of September 2021, after that, it upheld a resistance level, and then came the zig-zag structure which formed a rectangular structure and recently, today there is a structure that is still forming and it would be wise to wait for this structure to complete before doing any transaction. All this is shown in the screenshot below.
[screenshot from tradingview:https://www.tradingview.com/chart/qKhefbtW/]