A summary of Algorand
Algorand has an answer to all the issues promised to be addressed by blockchain, by being the first blockchain platform to solve the Blockchain trilemma of decentralization, scalability, and security.
The platform is currently aiming to solve another big problem in blockchain field. They have introduced private and public chains interoperability, known as Co-Chains.
Algorand has been designed to work securely and efficiently in a permissionless environment consisting of a random number of participants, all of whom can join or leave the network at any time, and all without any approval or vetting process. No matter how scalable, distributed, and secured a permissioned chain may be, its members may not want to interact only with each other, but also with other chains and with the world at large.
Algorand provides a permissionless blockchain that is truly decentralized (because every single token can participate in the consensus protocol, with the same power as any other token), scalable (because it allows even billions of users to generate a block in seconds, using a trivial amount of computation), and secure (because it cannot be subverted by a few miners or delegates, or by the owners of a small percentage of the tokens).
Algorand built the world’s first open source, permissionless, pure proof-of-stake blockchain protocol for the next generation of financial products. Algorand provides a blockchain that is truly decentralized, scalable, and secure. Every single token can participate in the consensus protocol, with the same power as any other token. Billions of users can generate a block in seconds, using a trivial amount of computation. What’s more, it cannot be subverted by a few miners or delegates, or by the owners of a small percentage of the tokens.
The Algorand protocol relies on its unique cryptographic sortition and its super-efficient Byzantine agreement. The Algorand blockchain does not fork. Each new block is separately agreed upon and is guaranteed to remain on the Algorand chain forever.
Algorand’s co-chain and it’s features
Algorand co-chain architecture allow users to enjoy the advantages of the two forms of blockchain Viz public permissionless and private permissioned blockchains.
The public, permissionless blockchain enables all organizations, individuals, and governments to transact with efficiency, security, and transparency, both internally and with each other. It also enables private enterprises to expand their addressable markets, increase revenue, generate new product opportunities, and more.
While public permissionless blockchains are not always well-suited to organizations such as finance, banking, government, health care, and others that must carefully control who can access their data, and comply with complex regulatory requirements. A private permissioned blockchain can provide the level of rigorous fine-grained control needed by such organizations. However, private permissioned blockchains run the risk of isolating their users.
Co-chains are Algorand permissioned chains that guarantee efficient and safe interoperability with the Algorand permissionless chain and other co-chains.in other words, Algorand’s Co-Chains are private permissioned chains that interoperate with the Algorand Mainnet.
An Algorand co-chain is a special, permissioned version of the Algorand blockchain that enjoys customizable decentralization, transaction finality, layer-1 smart contracts, and benefits from continued innovation on the main Algorand chain.
This co-chain Is:
- totally independent from the public chain, shields its transactions from all outsiders, chooses its own validators, and runs its own Algorand consensus algorithm;
- Interoperates with the Algorand main chain to transact with other co-chains, and everyone else, with the same ease and security with which the members of Algorand’s permissionless chain transact with each other; and
- Enjoys, both in its internal and external interactions, the same atomic transactions, layer-1 smart contracts, and all other primitives and tools offered by the permissionless Algorand protocol. Moreover, it automatically inherits all the improvements and upgrades that will be added later on to Algorand’s permissionless protocol.
The Algorand co-chain architecture enables the members of a permissioned chain to work most securely and efficiently not only with each other, but also, while retaining maximum autonomy, with the Algorand permissionless chain and members of other chains as well.
will be able to interact with other co-chains and with the mainchain.
- Algorand Co-Chain enjoys:
Independence from the public chain.
Layer-1 smart contracts.
Rigorous fine-grained control.
Transactions shielded from outsiders.
Choosing its own validators.
Running its own Algorand consensus algorithm.
Interoperation with the Algorand main chain to transact with other co-chains with the same ease and security.
Enjoyment of all the benefits of the Algorand main chain
- How Algorand Co-Chains interoperates
ASSET TRANSFERS FROM AN ALGORAND CO-CHAIN TO THE MAIN CHAIN
A user of an Algorand co-chain may want to transfer an asset owned via a public key to Mainnet of which the transfer is authorized by a digital signature.
The user may have several reasons to do so. For instance, user may want to auction off the asset so as to earn some stable coins, and the larger the set of bidders, the higher the fetched price. However, rather than auctioning asset on the co-chain, user may prefer to auction it on Mainnet, so as to welcome bids not only from members of the co-chain, but also from users of Mainnet or other co-chains.
In fact, any member of a co-chain can easily transfer stable coins to Mainnet for the sole purpose of participating in the auction.
ASSET TRANSFER FROM THE MAIN CHAIN BACK TO THE CO-CHAIN
Having sold an asset in the Mainnet, user may want to transfer the stable coins earned in the auctionto the co-chain.
In sum, Algorand’s co-chain are permissioned chains that guarantee efficient and safe interoperability with the Algorand permissionless chain and other co-chains.
Algorand’s co-chain architecture aims to expand more possibilities for the Algorand ecosystem. Hence, Algorand is on the track to becoming a leader among existing blockchains.
Check out the links listed below to get more information on Algorand:
Written by: Adesina Oluwasanmi, Algorand Ambassador