There is no doubt that blockchain technology holds great potential for the future. It is expected that this development will create a number of opportunities for different industries around the world.
In particular, there is a great deal of centralization within the finance sector. Over the years, blockchain technology has faced many technical challenges, which have prevented frictionless financial transactions from becoming a reality. If we overcome these challenges, we will be able to achieve mass adoption of blockchain technology.
Each day, Algorand’s award-winning team of blockchain enthusiasts strives to reinvent traditional finance and financial businesses. As a resuly, Algorand has consistently maintained an advantage over its competitors. The Algorand price history and current charts clearly indicate investors’ sentiments towards this cryptocurrency.
But what make Algorand special out of all the other cryptocurrencies? Let us find out below.
An all-PoS protocol
Algorand has developed a Proof-of-Stake (PoS) that prevents cheating by a minority of money and makes the majority ignorant. This is more efficient than paying for honesty with fines. By doing so, the system effectively prevents any initiative a small group of individuals takes to control the entire economy’s fate. The money you keep in your wallet is secure and cannot be taken by any unauthorized person, so the risk of it being taken by someone else is low. This means that there will be a better liquidity situation.
An unforkable chain
The non-forkable chains of Algorand make it one of the most unique cryptographic platforms. There is a possibility that a blockchain can be forked by splitting it into two branches, which will leave only one chain behind, which will lead to a great deal of uncertainty. For example, if a payment has been made, you can never be sure that it has been made since it may be in either the lost or the branch that survived.
Only one block is required to reach the threshold of votes in Algorand’s system, meaning that no fork must occur, and all transactions will be finalized without any forking. The inscription of a block on a chain is permanent and cannot be changed once it appears. When you find a block with payments forwarded to you, you can treat it as paid and take care of the payment as necessary.
Safety
Algorand uses a unique approach to combat corruption. It is impossible for an adversary to corrupt anyone through DoS in this situation, and by the time he succeeds, he has been unsuccessful in his attempts to corrupt others. If a 1000-strong committee remained in power for a minute, it would remain vulnerable to a DoS attack. Traditionally, members could be bribed for a longer period of time, say a few days, if they held authority. An individual who intends to corrupt or bribe Algorand does not know whom to attack with a DoS attack. The DoS attack will likely be rendered ineffective once the committee speaks.
Its scalability
Once a candidate has been selected, each member is required to propagate a single, short, and quick computed message. By doing this, it is ensured that a maximum of 1000 short messages will be propagated; it does not matter the number of users. In turn, this provides Algorand with a scalable solution for the implementation of blockchain technology in its operations.
A decentralized approach
This will be the first time in the future that there will not be a set number of users selecting or approving the next block. As part of the process of creating new blocks, committees are sometimes selected at random in a secretive manner in order to allow everyone an equal chance of being a part of it.
Final thoughts
This will be the first “permissionless’ and pure Proof-of-Stake blockchain protocol that has ever been created in the history of the world and will provide a secure, scalable, and decentralized platform for economic growth and development. Algorand facilitates smooth transactions similar to those of the world’s largest financial networks due to its ability to finalize blocks within seconds. Through the use of blockchain technology, Algorand is writing a new chapter in the history of world finance which breaks down technical and geographical barriers, thus enabling the company to change the world of finance for the better.
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