Skip to content Skip to sidebar Skip to footer

Published: Fri, August 19, 2022, 11:28 AM

Last update: Fri, August 19, 2022, 11:30 AM

With the ability to transfer peer-to-peer value in a secure, transparent, and near-instantaneous way without intermediaries, blockchain is arguably the most transformative technology of our time. Yet, with many popular chains like Bitcoin and Ethereum still relying on the energy-intensive proof-of-work (PoW) algorithm, progress towards economic freedom comes at a cost to our environment. Algorand, the world’s first carbon-negative blockchain, presents a scalable and sustainable alternative that has already gathered a large community and been adopted by leading organizations around the world, including being selected as a platform for official FIFA blockchain.

What is Algorand?

Committed to being the greenest and most efficient blockchain, Algorand provides institutional-grade infrastructure capable of hosting a wide range of decentralized applications (dApps) and digital assets. At a time of growing global concern over the climate crisis, Algorand offers solutions that are both powerful and environmentally sustainable.

With increased attention paid to energy By using PoW blockchains like Bitcoin, many chains have sought to reduce their carbon footprint by adopting more environmentally friendly proof-of-stake (PoS) consensus mechanisms. However, most of these solutions sacrifice decentralization.

Since the richest PoS validators (those who provide the most “stake” in the network) have disproportionate control, governance ends up in the hands of a few network participants. Algorand, however, uses a unique algorithm called “Pure Proof of Stake” (PPoS) which ensures that none of the three key elements of the blockchain trilemma – scalability, security and decentralization – are compromised.

How does Algorand work?

Algorand’s PPoS algorithm prioritizes fairness and decentralization. Just like other PoS chains, users can become block validators on Algorand by staking its native $ALGO token. However, unlike other PoS chains, PPoS selects block validators randomly and anonymously, giving equal opportunity to all network participants regardless of their stake and ensuring that no group of validators gets more control. than the others.

PPoS also promotes decentralization because the identity of the next block validator is unknown to other network participants. In this way, Algorand’s unique approach to security relies on the honesty of the majority of network participants rather than a limited subset of a few.

As an open-source blockchain, anyone can rely on Algorand, knowing that their contributions don’t harm the environment. Each transaction is completed in four seconds, making this carbon-negative blockchain fast and scalable. Algorand already hosts a growing number of dApps and is developer-friendly by design. Rather than having to learn a new programming language like Solidity to start creating smart contracts, developers can create assets using a language they know, like Java, JavaScript, Go, Python, or Rust.

Who is behind Algorand?

The Algorand blockchain was founded in 2017 by Silvio Micali, professor of electrical engineering and computer science at MIT. With a background in cryptography and secure protocols, Micali is the co-inventor of pioneering technologies such as zero-knowledge proofs and verifiable random functions, both widely used in cryptography today.

Besides founding Algorand, Micali has received numerous awards and honors for his work, including the Turing Prize in Computer Science, the RSA Prize in Cryptography, and the Gödel Prize in Theoretical Computer Science. He graduated from the University of Rome and holds a doctorate in computer science from the University of California.

How is Algorand carbon negative?

According to a recent estimate, PoS chains are ~2000 times more energy efficient than PoW chains, making their contribution to carbon emissions negligible. However, Algorand goes even further in its ecological commitment as the first chain in the world with a negative carbon footprint. In April 2022, Algorand announced that it would offset all of its carbon emissions by implementing the first smart contract to automate the process. A percentage of all transaction fees on Algorand is now dedicated to carbon offsets.

Algorand has also partnered with ClimateTrade, a blockchain marketplace for CO2 carbon offsetting, to further help maintain a carbon negative network.

The Algorand token (ALGO)

ALGO is the native currency of the Algorand blockchain and is used to pay transaction fees on the network as well as to reward network stakingrs and validators. As the Algorand network operates on a variant of PoS, there is no power-intensive mining. Any user can become a validator by staking their ALGO tokens. The ALGO token has a maximum supply of 10 billion.

What other problems does Algorand solve?

Beyond a deep commitment to sustainable technology, Algorand is fast. Transactions set up in less than four seconds, regardless of chain volume, and cost a fraction of a penny. With the well-documented scalability issues of Layer 1 chains like Ethereum leading to long latencies and exorbitant transaction fees, it’s music to the ears of end users and dApp developers who often find themselves out of prices for Defi Trades or NFT Transactions.

The strength of vision, ease of use and agility of Algorand led to its selection by FIFA as the official blockchain platform of the International Federation of Association Football. Algorand will be a Regional Supporter of the FIFA World Cup Qatar 2022™ in North America and Europe, and an Official Sponsor of the FIFA Women’s World Cup Australia and New Zealand 2023™, while helping the association to develop its digital asset strategy.

Final Thoughts

With one of the most widely recognized contributors to modern cryptography as a founder and a highly accessible, scalable and efficient network embraced by some of the biggest names in the world, Algorand is rapidly gaining momentum. For founders, builders, investors and strategists passionate about improving the world’s financial future – while ensuring the preservation of its climate – Algorand makes a compelling choice.

Source link

Leave a comment