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Algorand: upgrading the protocol to version 2.0
Algorand: upgrading the protocol to version 2.0
Blockchain

Algorand: upgrading the protocol to version 2.0

By Alfredo de Candia - 21 Nov 2019

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Algorand announced today that it has upgraded its protocol to version 2.0, thus allowing greater development of dApps (decentralised applications) and ease of use of the platform itself.

algorand upgrading protocol

How does the AlgorandAlgorand protocol work?

The Algorand blockchain uses PPoS (Pure Proof of Stake) which is based on the so-called Byzantine fault tolerance, which means that consensus is reached without a central authority.

In this scenario, Algorand tolerates suspicious activities as long as the majority of the staking activities remain benign. All network participants can be chosen, even in a casual way and without the knowledge of the users, to propose and vote on the blocks, thus allowing an almost total decentralisation.

With this Algorand upgrade, the following functions will be introduced and improved directly on layer 1:

  • Algorand Standard Asset (ASA): This feature makes it possible for the tokenization and issuance of any type of asset on the Algorand blockchain, in a standardized way. These include fungible assets like currencies, stablecoins, and utility tokens; non-fungible assets like tickets; restricted fungible assets like securities; and restricted non-fungible assets like licenses and certifications;
  • Atomic Transfers: This feature offers a fast, low cost, and secure way to simultaneously transfer a number of assets among multiple parties. In a traditional economy, this is done in a trusted or legal framework. This becomes even more complex on the blockchain, but Atomic Transfers provide an elegant solution to enable more use cases, such as simplified and expedited debt settlement, efficient matched funding, and more;
  • Algorand Smart Contracts (ASC): These are stateless smart contracts that offer numerous possibilities for governed transactions via simplified scripting templates. They automatically enforce custom rules and logic, typically around how assets can be transferred — lowering cost and risk in the process. In addition, a scripting language called TEAL (Transaction Execution Approval Language) has been created to enable developers to build their own transaction rule structures and smart contracts. This is useful for everything from creating escrow accounts to crowdfunding to creating collateralized debt.

As can be seen, the planned upgrades are very important and this shows that the project is always keeping up with the times and with innovation, as stated by the CEO of Algorand, Steve Kokinos:

“Building decentralized financial applications requires the right foundational technology and vision. At Algorand, we’re committed to continuous innovation and the development of technology that solves real-world challenges. With this release, new features and simple developer resources enable new use cases and broader adoption of blockchain overall.”

 In addition, this protocol update comes less than 6 months after the launch of the mainnet. This will also allow Algorand to meet the needs of the DeFi (Decentralized Finance) world, which is currently experiencing a quantum leap thanks to what has been done in this period by MakerDAO, which has updated its protocol for the new MCD (Multi-Collateral DAI).

A couple of months ago Tether chose to use the Algorand protocol to expand the stablecoin. The Algorand token is currently at position 49 on CoinMarketCap and is traded at a price of $0.2.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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