[Algorand and the blockchain Trilemma] - Crypto Academy / S5W4 - Homework post for prof @nane15
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Hello Crypto enthusiasts, it's here again another week in the crypto academy, I hope it's been great with you thus far?
Here comes another fresh topic of the season, on today's topic I will be discussing with you on Algorand and the blockchain Trilemma, a course tutored by professor @nane15.
Below is my submission to the task given. ENJOY!!
Question 1 - What is Algorand Blockchain
Algorand is an open-source blockchain that upholds the formation of dApps and DeFi on its safe, adaptable and proficient blockchain stage. Which is what makes the Algorand blockchain a high-performing and secure blockchain which seems to have brought problem solved to the blockchain trilemma as this blockchain compromises of the three features i. e, it is Decentralized, scalable and as well a secured. Blockchain network.
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Algorand is planned utilizing a permissionless blockchain protocol that can finish moment trades with no vulnerability.
Algorand blockchain feautures from other blockchain
- Adaptability: Algorand has a productive Byzantine protocol that can arrive at agreement on blocks at rapid speed. Consequently, the Algorand blockchain can uphold billions of clientes. Generally, Algorand can support a high exchange rate while keeping up with low gas fee..
- Self-selection: Algorand doesn't have devoted nodes or clients that decide the subsequent block rather, members are ceaselessly chosen arbitrarily to partake in validating of blocks.
The fundamental reason of any blockchain agreement strategy is that the organization members should have a say in the blockchain changes so as to boost them not to assault the network.
Regarding the Proof of Work agreement, this appears as the need of energy to run the calculations important to mine and validate a new block and get the mining rewards for being the first to solve the complex number. Nonetheless, Proof of Work requires a huge measure of electrical power. Where Every minner are devouring energy as they contribute their hash power trying to win the option to mine the subsequent block.
Which this brings the innovation of Pure Proof of stake so as to solve the energy consumption in the consensus mechanism of blockchain.
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The Pure Proof of Stake is new consensum mechanism in the blockchain system that permits staking of tokens to turn into a block validator, Pure Proof of Stake gives casting a voting rights onto token holders so they can choose validators. The greatest number of validators is fixed by the organization rules , example of Pure Proof of stake can be seen in the Algorand Blockchain.
What makes this unique from Proof of Stake is that validators are not just picked to partake dependent on the consistency of their stake that is, not base on the quantity of $ALGO they own but rather through arbitrary choice, regardless of the number of coins they own which makes it different from other consensus.
It's been known that when it comes to cryptocurrency or anything partaining the world at large, there is no perfection which this brought to the benefits and the setback of the PPoS consensus;
Advantages
The following are the benefits and uniqueness of the Pure Proof Of stake;
- Low power utilization and less equipment necessity : The PPoS consensus doesn't require the needs of lot of energy, nor do they require exceptionally complex equipment to validate new block. And as well, a validator for Pure Proof of Stake doesn't need to stake significant assets before been able to validate new blocks.
- Speed: Based on this Consensus Mechanism, the blocks are concluded in short order, . That is the reason Algorand is the primary Blockchain is to guarantee prompt exchange conclusion and prohibit the danger of hacks.
- Decentralized: The contrast would be that it at first chooses validators arbitrarily, and not simply as per the quantity of staked tokens. Consequently, all clients of the blockchain can be chosen sooner or later to take part in the approval, which guarantees security and a more elevated level of decentralization.
Disadvantages
Limited Participants: Despite it been said the PPoS consensus is for every particpants meaning any one who owns the blockchain token can participate in the block validation but still the staking is not for small earners as the system rule require participants that holds more than two thirds of the system’s total stake before been eligible to participate which thus bring the setback to the PPoS consensus.
Have mentioned earlier than the Algorand blockchain seems to have brought solution to the blockchain trilemma where, blockchain projects were then given the option to pick a two of the three choices of decentralized,scalability and security , this in all is what the algorand blockchain comprises as it is a blockchain that offers transaction at fast speed , and as well it is decentralized and use PPoS consensus for its security and block validity.
One can say the Algorand Blockchain has brought the solution to the Blockchain trilemma as other projects can now migrate or rebuild there network base on the PPoS consensus and as well so as to achieve a total decentralized network.
So with respect to the question , Yes, The Algorand blockchain solved the blockchain Trilemma.
I believe have made explanation on what PPoS is , Now let me elucidate more to you on PoW.
Proof Of Work (PoW) is a blockhain consensus , that is the security and validation of a new block in a particular network, For a new block to be mined , miners needed to solve complex mathematics using hardware manchine so as to achieve the validation of a new block which this method of mining is been refered to as PoW , but the major setback is that , The cryptocurency mining has proven to be a lucrative business in the past year which then brought more users and more miners who as well want to participate in the block validating ,this competition now brings more complexity to the Blockchain to the extent that normal computers can no longer be used for mining which thus require high end computer which consume large amount of Power so as to keep up with been the first to solve the complex.
But this hard mining is not needed with PPoS as users only mine base on the number of token they posses and as well these is kind of easier as participants are not choosing base on the number of tokens they posses rather base on vote castes by other users to choose who could participate next in the block validity.
So with responds to the question , Yes, PPoS is better than PoW when it comes to mining complexity.
PoS is also the other consensus mechanism used in validating new block by staking a token on a particular blockchain ,where the participant who stake the highest get to be the next block validator. Which thus means the competition is based on who stake the highest which is unkike the PoW where the competition is who solve the complex numerical first.
So with regards to PPoS which the block validator are only choosen at Random Variable which means to be able to participate in validating new block users do not need to have the highest stake power or have large amount of token but rather the validators are choosing randomly which means its only a matter of time before all members will be able to participate in the block validating which is unlikely in the PoS as the power continue been given to highest stake holders.
So Yes , PPoS is more of an upgraded version of the PoS and its much more effective due to its fast transaction speed.
To explore the Algoexplorer
- You fristly type in the algoexplorer website into a browser , which then land you to the algoexplorer homepage
From the page above , we get to see some relevant information like the Algo latest block to be 17,897,217 , and as well the circulating supply to be 6,306,795,259.46 and the Algo Price to be $1.6729 with a total supply of 10,000,000,000 Ango.
We also get to see latest block information from the algo explorer , the block rounds and as well the proposer
We can as well view the latest transaction from the algo explorer as we get to see the transaction ID and both the receiver and sender address so as to make confirmation of algo exchanges.
ALGO Transaction
To check on Any Algo transaction , From the previous image above , we then click on view all transactions where we get to select of what transaction we had like to know its details.
Then by clicking on The hash address or as well you can make a search using the hash address to view the transaction details as you get to view the Algorand account overview and as well the sender account balance and the block which the transaction was processed on.
From the transaction overview , we can verify the transaction as well check the TimeStamp, the transaction ID , block number and the Group the transaction belong to.
Question 8 - Carry out an analysis of the price of ALGO from the beginning of the year to the present. Via graphics (screenshots required.)
I wil be carrying out my statistics analysis from the website
- From the image below , you get to see the Price of Algo to be at $0.6 as at January2021 and as well from that point we get to see as the Algo market position as it keeps moving up to bullish for a particular long period of time .
As at April 2021 when the Algo market was at $1.32 , then the market took another turn to bearish which lasted a while as we get to see the Algo price drops drastically.
Then at July 2021 the Algo bear ended leaving the price at $0.85 , which this then brought existence back to the Algo market as the market keeps rising from that position which made the market overcome its previous position from bearish.
As at the present (December 7 2021) , we get to see the Algo price to be at $1.79 which can also be seen from the chart that the market has been showing bullish in the previous days till date.
Here comes the end of my task on the assignment given on the topic "Algorand and the blockchain Trilemma" , Now Let me run the summary through with you.
The Pure Proof-of-Stake agreement system is a variety of Proof of Stake, where the validators of another block are not just chosen dependent on the quantity of tokens they have to stake rather they are choosing through the Verifiable Random Function.
Algorand is the Blockchain that made and uses this Consensus Mechanism for validating new blocks and as well it improves the security of the network.
One uniqueness of the PPoS consensus is that any customer who claims $ALGO, paying little regardless to the measure of tokens they have, can as well turn into a validator, provided they are been chosen dependent on a Verifiable Random Function.
Special regards to @nane15 , it's a well delivered lecture.
Steemit Cryptography Student.