Algorand— The ultimate solution to Blockchain

By DeFi Girl | defi_girl | 18 Aug 2020


Today’s centralized economy has many flaws and Blockchain helps solve those problems as it is a decentralized, open-source, and secure technology. Some major problems associated with the present centralized economy are listed below:

  • There are many trust issues related to the centralized system as these days without the involvement of any third party transfer of value, transactions and exchanges are difficult to make. According to the study, 2.5 billion people do not trust the centralized system because of the privacy reasons concerning their data.
  • It is not accessible for everyone, as not everyone can participate in a global economy and that is the problem. Not everyone can gain advantage or use the basic financial services so here comes the drawback of a centralized economy that it is available only for certain groups of people.
  • Another issue is of slow transaction speed, it takes days or even weeks for the transfer to be done from one country to the other. Speed issue does not only apply on country to country transfer, but it takes the same time for transfer of value within the same country, between different financial institutions.
  • The system is inefficient and is costly as financial transaction costs represent 6% of the global GDP leading to much more costs around the world.

WHAT IS A BLOCKCHAIN?

Blockchain has a database that contains transactions which are immutable, and that is shared among a network of computers called Nodes. Transactions are securely propagated in a bundle of blocks and each block is verified and secured by a decentralized network. Any users can read, write, or add to this database. Every block gets a code known as a hash that tells the users that works as proof for users showing that their transactions are added to that block.

PROBLEM ASSOCIATED WITH THE BLOCKCHAIN TECHNOLOGY:

Existing blockchains to some extent solve the problems really well but the issue is that they are slow and permissioned. The amounts of transactions are very much when compared to the speed of blockchain. Slow blockchains cannot handle these massive amounts of transactions that are happening every day in the economy. Not everyone can participate in the permissioned blockchain, the power is in the hands of few users and it is not open to everyone for participating.

ALGORAND THE ULTIMATE SOLUTION TO THE PROBLEM:

 

Algorand is the first pure proof-of-stake, permissionless, and scalable blockchain that provides solutions to all the problems related to existing blockchain. The advantages includes:

  • Because of the decentralized nature of Algorand blockchain, it is open to everyone. To participate in. Any user can make transactions and can read the whole history of their transactions without any problem.
  • Algorand blockchain platform provides with fast speed for the transaction, be it from country to another country, or transactions within the same country. Transactions can be made efficiently and speedily across the globe. It allows more than 1000 transactions per second in less than 5 seconds which is perfect for a blockchain platform.
  • Transactions clear very fast without causing trouble to users as they do not have to wait. Algorand ensures that the transaction finality, as once the block appears users do not have to worry about their transaction as the block will be a part of a chain and their value is safe and secure.
  • Although Algorand is a decentralized blockchain platform but still it is cost-efficient. It has minimal participation costs and lower costs for transactions making it ideal for the users.
  • The trust of users on Algorand blockchain can be verified by the fact that it provides with the immutability of shared ledger. This is ensured by decentralized nature and cryptographic tools that Algorand uses. Anyone can take part in the consensus adding on to the security of the network. The digital assets of users are not stored in a central place nor is run by a central authority but it is decentralized and assets are distributed across a global ledger utilizing high-level cryptography.

Algorand Blockchain protocol proved its efficiency and is still proving its blockchain technology and is a new innovation towards a permissionless and borderless economy. It is safe and secure which is now trusted by millions of users and their number is increasing day by day. As it is the ultimate solution to the problems associated with blockchain, many are adopting this blockchain platform owing to numerous benefits that it provides with. 






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DeFi Girl
DeFi Girl

As a Dr. Of Pharmacy I intent to bring Decentralization to solve health sector's current problems. Presently I work as Algorand Ambassador & Tech Enthusiast.


defi_girl
defi_girl

Hey! Defi_girl Ambassador to Algorand, Bluzelle here. Join me as I explore through the innovative Decentralized Finance space. I will be sharing my thoughts on DeFi, and projects which are potential competitors.

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