When it comes to the most effective blending of technology and finance, no one does it better than Algorand. It has come up with a platform of technology that ensures real finance with no friction. Algorand is a technology venture that came up with the very first permissionless, open and pure proof-of-stake blockchain protocol that functions with no forking.
Developed to be the finest in its class, it comes with adequate security, decentralization, and all the features of scalability that is relevant for the economy of this age.
There is a world-class team that works round the clock to ensure that there are conventional finance and decentralized financial transactions that work for all stakeholders in the niche of frictionless finance. Algorand is an ideal example of how advanced technology has been used to make the best of sophisticated and complex applications for the benefit of all the stakeholders.
The protocol for Algorand is in three broad areas and each one is going to be discussed in this section. The first is the smart contracts while the second is the Algorand standard assets and the third is formed by the set of atomic transfers.
– Smart Contracts (ASC1)
These are very detailed smart contract capabilities that allow DeFi solutions and dApps. This allows for scalability for billions of users engaging in tens of millions of transactions across the globe daily. These same smart contracts operate in a way that the users are made to pay minimal fees for the transactions. In other words, making use of smart contracts is a more cost-effective way of getting things done.
In many instances today, a good number of transactions are done using the archaic agreement of contracts and this is made using paper. In this instance, there is the need to make use of reliable third parties who will then go ahead with the validation of all the terms of the contract and agreement. As a result, the conventional method takes time, is outdated, and to make things worse, it is not the ideal when it comes to cost-effectiveness.
It is for these limitations of the old ways of doing things that the developers came up with the blockchain technology and that allowed for the introduction of smart contracts for the automatic conduct of transactions. This is enabled due to the use of some lines of code that are present on the blockchain immediately the terms of the agreement are met.
That said, developers that making use of smart contracts that were designed using the first set of blockchains have to confront certain challenges that limit the wide acceptance and applicability of their blockchains. Because they are based on the first-generation, these versions have a lot of issues. They are expensive, slow when it comes to the propagation and are not even good for applications. What makes Algorand’s smart contracts (ASC1) excellent is that it has been designed to get rid of all these impediments.
– Algorand Standard Assets
These are best described as standard blockchain assets that come with flexible options and are posited directly in Layer-1 format. These options are fully customizable and make life truly easy and efficient for users.
Algorand Standard Assets (ASA) offers a conventional, Layer-1 platform for the representation of any kind of asset present on the Algorand blockchain network. These can be non-fungible, restricted non-fungible, restricted fungible and fungible assets. Examples of fungible tokens include cryptocurrencies, loyalty points, in-game points, stable coins, and system credits.
As for the non-fungible tokens, examples include identity, certifications, supply chain, real estate, in-game items, and collectables. Regarding the restricted fungible tokens, these include flat issued by the government and authorities, certifications, and securities. That said, real estate, regulatory certifications, and ownership registries are examples of restricted non-fungible tokens. As it applies today, several issues have to be addressed when dealing with the digitization of assets. Some of these include:
• Immediate settlement
• Access to digital and globalized markets
• Enforceability and ease of asset controls
• Round-the-clock transferability
• Administrative efficiency, especially with reporting and compliance
– Atomic Transfers
This is a feature that provides security for transfers but that is not all. It also gives room for instant transaction settlement for multiparty transactions that have been conducted on the platform. Algorand is truly a very comprehensive system and one that has been designed with the stakeholders in mind — it can only get better.
An open-source public blockchain that is dependent on an authentic proof-of-stake consensus protocol, Algorand offers transaction finality and scalability for billions of users across the globe. It is truly an innovative step towards a genuinely borderless economy and with its efficient protocol, therefore, it is not strange that the platform is growing in leaps and bounds.