Algorand is referred to as a blockchain-based cryptocurrency platform that is set to be secure, flexible, and decentralized. Algorand again is a platform that supports functional smart contracts and it’s an agreed algorithm that is set to be based on proof-of-stake principles and an involved agreement protocol. Algorand blockchain came into existence in the year 2017 developed by a man called Silvio Micali.

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It is a decentralized blockchain, and also a platform that allows smart contracts, it is developed under the general agreement of PPoS, also it allows securities, non- interconvertible tokens, decentralized exchanges. It was discovered by Silvio Micali, at MIT and in collaboration with Algorand Inc, Algorand Foundations manages the ecosystem, awards funding, research, governance, and decentralization of the Algorand network.

Hence, the Algorand blockchain as a decentralized system simply allows its users all the leverages to govern and participate in all the day-to-day activities in the blockchain ecosystem. There is simply no restriction to what a user who is connected to the internet/online can do provided you are a holder of the Algo token no matter how small the token might be all are equal in the blockchain and given equal opportunities to operate.

MEANING OF PPoS

Pure Proof Stake (PPoS), refers to a protocol that is built on Byzantium consensus, and it allows every user’s to control it, in his/her choice of, a new block is sized to its stake (total number of tokens), in the system. And it allows users to randomly and privately select to propose blocks and vote on block proposals.

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It selects users within a second and it receives the reward and promotion if it meets the requirement to start. It can not only provide the platform with securities but it ensure that the users are accurate and fast in their transactions, as well as ensuring a decentralized network.
This PPoS is hence best explained under two different categories which are:

• Block Proposal Phase
• The verification/certification phase

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• Block Proposal Phase
  It is related to the PoS consensus protocol, where members of the committee are rapidly selected through a Cryptographic-sortition. which means there is no central authority to decide on who the users are, instead, there are said to be selected based on the total numbers of Algo tokens the posses rapidly and also based on the type of block they decide t process, and all through a Verifiable Random Function (VRF), which is said to be public based pseudorandom function (a public address generated cryptographically specifically for users to operate in the block processing), it serves as a proof capability for the block processing.

• Verification and Certification Phase
  It is been done by Byzantine Agreement Consensus protocol, which is always known as BA protocol. It refers to the finalization of the process, through cryptographic sortition. Members that are in the voting and certification committee are been selected. etc

ADVANTAGES AND DISADVANTAGES OF PPoS

ADVANTAGES OF PPoS

• It is fully decentralized because it allows the opportunity for everyone to participate in block processing in whatever token they wish, unlike conventional PoS. It selects everyone in a random and hence there is no one part in this portion.

• It also allows everyone to participate in this so that the information will be shared across different people representing as nodes to the information and it is always ready and available to all the users.

• Another advantage of the Algorand blockchain is simply based on the point that it has been created to eradicate what is known as blockchain trilemma hence making the Algorand blockchain fit to stand the day-to-day advancement of the world.

• Also, all uses in the decentralized system have the leverage and equal right to create a block, verify transactions or validate block creation.

• High level of security in the decentralized system which helps keep the system and its users safe and free from malicious behaviors and virus attacks.

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DISADVANTAGES OF PPoS

• On this system the developers/founders simply make it advantageous for themselves in a way, there have a higher amount of the token and also a longer vesting period.

• The system can be used for selfish interest such as monetary gain, instead of seeing to it that the system have to continue growing alongside needs more development.

• Since the Algorand blockchain is considered a blockchain for the majority, it may face a problem of in-experience members when it comes to blockchain creation and other activities for its members holding onto the fact that most members are new to it and might not have the skillset and required experience to run the required task.

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DO YOU THINK ALGORAND SOLVED THE BLOCKCHAIN TRILEMMA? EXPLAIN YOUR ANSWER.

Yes….!

Algorand is said to solve the three main problems faced by blockchains' trilemma, which are scalability, security, and decentralization. Algorand's algorithm, and it’s called Pure Proof Stake (PPoS), is the network that ties its security to the truth of the majority.

With the inclusion of Pure Proof of Stake in the system, this is simply seen as a blockchain for the majority. Hence keeping leverages for no discrimination or sentiment felt, the system, therefore, is open to everyone who is connected online/internet and has in his/her possession any amount of the token is therefore liable to perform any transaction needed.

The system simply chooses its, users, at random to perform the task of block creation not minding the amount of token this user has in his/her possession. What there are after is just have their token then you are eligible to be part of the system.

With this system has been able to set in place is way different from what the Prof of Stake offers though there are similarities. The prof of stake allows users to participate fully in the activities of the blockchain if there holds a certain required amount of the set token. And this is quite the opposite for the Pure Proof of Stake.

DO YOU THINK PPOS IS BETTER THAN POW? EXPLAIN YOUR ANSWER.

Yes…..!

Because in PPoS, there is said to be a high level of expandability, compared to PoW which generates much electricity and computing power to process blocks and it ends up consuming a lot of time all in name of solving many mathematical puzzles, and its offers more.

As already said instead of going in to expend your energy in performing a given mathematical task that you might not, in the end, win or get it right why not stake your tokens relax, and get the benefits you need.

In the PoW there is too much energy needed to perform a given task that in the end, you might not still emerge as the winner. I would say The Pure prof of stake serves better than and will do.

Yes…!

The pure prof of stake is better than the proof of stake. The PPoS is simply an open body with no serious criteria to beat. All you have to do is get some of the tokens in your possession and boom you are good to go. All transactions is done you are therefore verified and allowed full participation.

In the choosing of creating a block or even been chosen to join the communities that verify the blockchain and also transactions, you have equal rights as those with higher amount of the token.

But the reverse is the case with the PoS. you will have to hold a larger amount of the set coin before you will be allowed full access to the blockchain.

Exploring the algoexplorer we go to algoexplorer.io where on the main page, information related to the cryptocurrency are being displayed.

[screenshot taken from https://algoexplorer.io/]

On the right-hand side of the desktop, we can see the latest transactions processed, we select one to continue.

[screenshot taken from https://algoexplorer.io/]

Then click on any transaction on the latest transaction box, The relevant information such as the Transaction ID, Timestamp, Block number, the Sender and Sender information are been displayed for us to see.

[screenshot taken from https://algoexplorer.io/]

Carry out an analysis of the price of ALGO from the beginning of the year to the present. Via graphics (screenshots required.).

The Algo token is presently at a price of $1.5075 at 11-December-2021. I will therefore be presenting a detain analysis of the token below.

Presentation with the MACD indicator, Starting from the 1st of January 2021, the ALGO token has been undergoing a bullish trend(The uptrend of a token/when a token starts to rise in price) the trend lasted for a number of 6 days. The token started experiencing a bullish trend later on the 13th of January up to the 26th of January then a false breakout came up.

[screenshot takenfrom tradingview]

From 26th of January after the false breakout, the token held a resistance level, and after that later downtrend up to 2nd June to August 31st a breakout started and this led to an uptrend which held to 14th of September before another false breakout came up on the 22nd of September, it held a resistance level with rectangular patterns forming on the chart. And currently, a trend is forming which is not yet complete.

[screenshot takenfromtradingview]

CONCLUSION

In a nutshell, I must say that the class was really nice and impactful all thanks to prof. @nane15 for such a wonderful class. It is worth any one time. I hope I meet up the required standard of this homework task.

I have to hope to take part in your next homework post sir. Thanks once again for a wonderful class.
CC:@nane15