Randomness is the selection of committee member in a particular blockchain using POS consensus protocol. This type of selection is used in Algorand through VRF (Verifiable Random Function). In other words, Algorand applies a random lottery to select their committee members. Keep reading to learn more about this.
Typically, the block proposers generate the VRF, and that will depend highly on the state of the blockchain. The Algorand blockchain and their ALGO token are dedicated to creating scalability, balancing security and also decentralization without compromising any of these factors. That said, Algorand achieves this by using their randomness to create a more sustainable system.
In fact, an enemy or hacker can’t predict the randomness of the system before seeing the message created by the block proposer. More importantly, the randomness is updated after every round. Additionally, even after witnessing the randomness of the first round, you can’t predict the future series. This feature is also useful for other purposes such as digital signatures. Now that you have that in mind let’s try and understand Algorand and what it brings to the crypto world.
What is Algorand?
Simply put, Algorand was created from the ‘blockchain trilemma’. Meaning, one can’t have full control over the security, scalability and decentralization of the blockchain. To be more specific, it practically impossible to harm the scalability and security of the Algorand blockchain.
The proposal that led to the creation of these aspects of the ALG token and blockchain was launched back in 2019. The project seeks to promote mass adoption of the decentralization of the digital coin featuring instant verifications, easy access, and also a pure POS that’s developed internally. What’s more, the blockchain should be capable of transaction management that’s scalable to custom blockchain tasks.
The main aim of the Algorand is that it revolves around the democratic version of user interaction with blockchains. Whereas major cryptos such as Bitcoin operates using the POW (Proof of Work) algorithm, Algorand uses the POF with the self-validation tactic of verifying transactions.
This Boston-born concept was founded by Silvio Micali, who is an MIT professor with Turing Award under his belt. This award is a Nobel Prize in computing. The MIT professor joined hand with the rest of his team of experts and researchers to create a blockchain that brings something new to the world.
And to that effect, Algorand was first listed as a public sale in June 2019, and the prices eventually stabilized after a very high initial sale price. More importantly, the Algorand Foundation is in charge of the entire project. Some reporters say that the foundation was able to raise over 60 million dollars through the sale.
What new concept is Algorand trying to bring to the market?
Compared to the rest of the altcoins in the market, the Algorand blockchain is relatively new. Regardless, this token is trying to bring something new to the table. They have successfully implemented several projects that could potentially make waves in the crypto world. These concepts include;
- Borderless economy: we can all acknowledge the effort of the founders of this crypto in creating a borderless economy. Algorand is secure, decentralized and scalable. On top of that, the blockchain has distributed ledgers in the hope of creating a bridge between the organizations and companies that are seeking to tap into this market. That said, all those factors would count for nothing, especially if the blockchain weren’t capable of giving outstanding performance to the demands of the economy. Thankfully, the engineers behind this crypto have gone above and beyond to ensure Algorand performs according to its expectations.
- Pure POS: without a doubt, the pure proof-of-stake in this crypto mainly focuses on the ownership rights instead of the mode of operation. This protocol makes this crypto more at home when it comes to the financial industry. To make this possible, the Algorand has a unique consensus protocol that was developed by Micali himself. The feature reduces the demand for computing power and also allows almost instant verification of transactions in a matter of seconds. More importantly, the blockchain is able to reach a consensus without the need for a centralized authority. The crypto also has tolerance for malicious users just as long as they stake on the honest ones. In addition to that, each user can see each transaction and also has the chance to write a future transaction. Also, users can influence the selection of any new block while at the same time, stake the size of the system.
How the Algorand Works
Just like any other crypto, Algorand runs on a blockchain system that’s decentralized. However, there’s a bit of a twist that separates Algorand from the rest of the altcoins in the world. That’s because Algorand utilizes the Byzantine Agreement type of protocol that’s decentralized and also based on the Pure POS. That comes with several benefits to the blockchain users and the entire system in general:
- Every user is not required to use their keys, especially when spending their stakes. Instead, users in this blockchain will only have to create then register the participation keys. Later, the key is then used to approve any proposal or even voting done in the system. More importantly, security is created mainly through keeping the ALGO tokens protected by using the keys. That also happens even when a participation node may be compromised during the transactions.
- The VRF also plays a significant part in the operations of the Algorand blockchain. That’s because this protocol supports the self-selection procedure through which users can secretly determine they can participate in the consensus protocol round.
To wrap it all up
Well, there you have it! The Algorand blockchain stands out as a decentralized, secure and scalable technology. Its randomness makes all this possible by helping to increase the security of the entire system and so much more. On top of that, Algorand also provides immediate transactions that could see the increase of mass adoption of the crypto throughout the world.
That’s because this is critical, especially when dealing with time-sensitive applications since you don’t have to risk certain transactions disappearing. In truth, this crypto is already changing the mindset of people who would otherwise be a bit hesitant when it comes to digital coins.