What is Blockchain?
Blockchain just as its name implies is made up of multiple blocks bunched together. It works in such a way that when a block stores fresh data, it is incorporated into the blockchain. It operates as a global computer and not controlled by a single organization. It's made up of multiple autonomous computers interacting on the network.
Furthermore, blockchain involves a continuous updating of assets by recording them individually and it keeps a decentralized database of every activity that occurs on the network in a transparent way.
The decentralization is one of the major positive reasons behind the massive adoption of blockchain as it goes against the centralization policies of fiat by governments. However, not every blockchain network offers the full decentralization that blockchain promises. Many cryptocurrencies out there don’t fulfil the overall tendencies of blockchain but Algorand is trending today because it doesn’t just offer full decentralization alone but adds security and scalability to it.
Decentralization on Algorand
The Algorand Foundation is fully focused on making Algorand a fully decentralized blockchain both in its voting power and distribution of nodes. Its Relay and Participation Nodes remain public and unregulated. A variety of organizations from a wide range of technical and institutional backgrounds through several countries and continents have leveraged the network.
The Algorand incorporation resolved to place just part of its overall stake online in the beginning phases of the Algorand blockchain, so as not to have a centralizing status while still providing resilience to network attacks. These steps were taken to ensure that the Algorand network achieves its objective of true decentralization in the fastest and safest way possible.
Scalability on Algorand
Algorand’s public chain confirms transactions with latency in the order of one minute while being scaled to many users. Algorand ensures users can never have differing views on verified transactions, except when any of the users are fraudulent and the network is partitioned temporarily. By contrast, most cryptocurrency projects only allow temporary forks and by so doing, require a long time to confirm transactions, like an hour.
Since the Algorand protocol utilizes pure proof of stake to select a small set of block proposers and validators randomly, reaching a consensus on the next block, users need only obtain a fixed amount of messages. What this is telling us is that Algorand's consensus protocol does not expect users to solve cryptographic puzzles in order to propose or verify blocks, unlike Bitcoin's proof-of-work protocols. In Bitcoin, this computation is wasted effort, and if further computing power is directed into mining, the fundamental puzzles have to be made tougher to sustain the required block generation rate, thereby increasing computational loss without enhancing the blockchain efficiency.
However, the computational expenses faced by a single user in the Algorand protocol just requires the generation and verification of signatures with basic counting operations. Cost varies depending on the number of users selected per block, which is constant and not affected by the size of the entire network. Hence, scalability is enhanced in the Algorand Ecosystem.
Security on Algorand
One of the major focuses of blockchain projects is the security of the user's funds. A place where users can safely transact, reserve assets of high value, and create trusted business applications. At both consensus protocol level and network level, Algorand retains protection from attacks all while securing user's accounts.
Modern blockchains have constantly come up against a brick wall when it comes to dealing with the trilemma facing blockchain but not Algorand. Several projects have realized what gem of a project Algorand is and are utilizing their network. Some of those projects (use cases) include:
1. Props
Props network resolved to use the capital realized from their token sale to scale its user network by integrating extra user apps and evolving its infrastructure, as well as a transition from its PropsChain to the Algorand blockchain.
Algorand public blockchain is predicted to improve the speed and performance of Props while growing the volume of transactions and also provide a higher security level. This long-term relationship will enable Props and Algorand to work on a possible move of more technological elements within the blockchain world.
02. Attestiv
Attestiv has decided to use Algorand's technology to facilitate digital transformation across the insurance sector, helping to reduce P&C insurance fraud problems that would normally cost billions of dollars to solve. Attestiv's core technology centers on enabling digital media (pictures, videos, and documents), metadata, sensor data, and more to be verified through patent-pending Artificial Intelligence technology at the time of capture or by forensic evaluation.
It works in such a way that once media is captured, it becomes unchangeable through a process of "fingerprinting," an exceptional description of the digital media asset, comparable to a human fingerprint, capable of identifying future adjustments. These fingerprints are then stored on the Algorand blockchain in order to ensure that the data has not changed from its original form.
By utilizing the Algorand technology, Attestiv will provide a variety of privacy and security solutions that give necessary standards of compliance for regulated businesses. Additionally, Algorand provides Attestiv with a competitive cost pattern that can develop and scale the business.
03. RHOVIT
RHOVIT, a gamified content network, focuses on providing simple and inexpensive crypto-mining, while at the same time creating a better method of monetization for content creators. Built on Algorand and its high standard blockchain technology, RHOVIT will be gaining from its scalability benefits, as well as quality innovation to develop tools and innovative methods for users to mine and earn.
Conclusion
Decentralization, Scalability, and Security are the technological obstacles that have been hindering Mainstream blockchains for years and Algorand is eliminating them all. Algorand guarantees unlimited engagement, speed, and security in a fully decentralized network with the completion of blocks in a couple of seconds. In fact, Algorand is the first blockchain to offer users an instant processing of transactions. There is no fork nor uncertainty in the network which is a classical representation of the modern era of a decentralized and borderless economy. At the same time, the basis for this modern revolution is Algorand.
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