An In-Depth Guide To Algorand

What is Algorand?

Age-Old Issue of Scalability

  • High transaction fees
  • Delayed transactions

Consensus Protocols in a Blockchain

Byzantine Agreement Protocol

  1. The proof of stake consensus protocol randomly selects users based on their stake to create a block. In Algorand the users stake their position using ALGO to get selected by the protocol. Interestingly, the number of ALGO staked by the users directly influences their chance of getting selected. The protocol selects the users through the process of cryptographic sortition, where each user that gets selected executes a Verifiable random function (VRF) to affirm that the protocol selected them for this round.
  1. The second step is based on Byzantine Agreement protocol where voting is done to choose from the proposed blocks. Here, the network again randomly selects a new committee through cryptographic sortition. Just like step 1, when users confirm their presence in the new committee through VRF, the committee analyzes the cryptographic proof and proposed blocks of the members of the previous committee. The new committee then votes to select the block. If a block manages majority votes then it is instantly finalized and added to the ledger.

Security and Decentralization

  1. The malicious entity can’t determine which user will get selected out of millions of nodes on the network.
  2. If the malicious entity recognises that a particular user is selected then before it can corrupt the user, the latter would have sent their proposed block owing to the rapid pace of the block creation process.
  3. Even if there is a large group of malicious users, the chance of them acquiring a more than 51% representation in any committee will always be next to negligible.

Fork-proof cryptocurrency

Evolving Nature of Algorand

Algorand Solves Scalability Problem

Salient Features of Algorand

#1 Smart Contract

#2 Atomic Swaps

#3 Vault

#4 Rekeying

Environment-friendly Stance of Algorand

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Dr Vin Menon

Dr Vin Menon

A blockchain enthusiast and entrepreneur’s musings on the next big revolution since the Internet.