Algorand and the blockchain trilemma - Crypto Academy / S5W4 - Homework post for nane15.
Good day steemians,
I welcome you all to the season 5 week 4 of the steemit cryptoacademy lectures. This week, professor @nane15 has made a wonderful presentation or lecture concerning Algorand and the blockchain trilemma. It was well detailed and easy to understand. Below is my homework post for this task.
NO.1 WHAT IS AN ALGORAND BLOCKCHAIN?
Algorand is a cryptocurrency blockchain platform which was invented in the 2017 and launched in 2019 by one named Silvio Micali. This project was invented and aim help in solving the problem of blockchain network, which is the blockchaim trilemma. Its crytocurrency is known as algo, this are secured, decentralized and also scalable. This platform also run or supports smart contract, on the other hand the consensus mechanism are based in Ppos which is pure proof of stake.
This also helps in providing speed i.e when running transaction, it records so many blocks within a given period of time, since the blockchain only can use two out of the three features which are scalability, security and decentralization, the algorand blockchain helps to have all the three. Algorand blockchain is said to be open source, which means that anyone can view or create.
The algorand blockchain was also invented, which aims to build an open and also indeterminate finicial system, whereby anyone is capable to get part or involved. Also, in algorand platform, users can be able to earn rewards whenever you holds one algo coin or more than one, when holding it in your wallet, that means you are capable or eligible to be earning some rewards in the platform. In algorand blockchain, it carries out distinctive staking procedures or operation and does that not requires delegation in it i.e the only thing it needs is just for algo token to be in the wallet address of the user.
NO.2 WHAT IS PPOS?
PPOS in long form is know as pure proof of stake, this is a consensus mechanism which was created by making use of byzantine protocol whereby users who owns the algorand cryptocurrency which is algo token, to enable or allow users to choose the new block they want to be issues in the system. This users are being selected in an unsystematically way in order to propose and vote on block proposal. Lets have in mind that the algorand blockchain is seen as the first Pure proof of stake which aims to give Decentralization, scalability and security.
Pure proof of stake is distinct to the algorand blockchain which certify full performance together with the blockchain security and also speed when performing transaction all in a decentralized network.
In algorand, every user who has algo token, can be able to participate in this consensus protocol in order to decrease the amount of subjection. User who are participating are using participation key to participate, this can safeguard the users cryptocurrency. This can be more secure, since the security is not in control of the person that own the greater token or have more power than others, just like other networks do, but the ppos is randomly selelecting those that have tokens in their wallet to participate in the system.
NO.3. EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF PPOS.
Ppos also have some advantages and disadvantages, which i will list out below
One of the advantages of ppos is that it eliminates the state whereby on the one with highest tokens can participate on the network and this can make them to be earning more and more than those that have small power in the network( this is mainly in the pos method) so ppos allows all users who have at least more than one algo token the their wallet to participate on the network.
It also select users randomly, so anyone can be eligible as long as you have atleast 1 algo token by doing this, it makes the blockchain network to be scalable, secured and decentrilaztion. I must say this is a great improvement.
Now, users are selected randomly i.e they dont select a particular validator, but anybody can participate, so by doing this, it makes the network very hard to temper with.
Also, transactions are very fast and thousands of blocks can be created within a given period of time. So with the ppos, it makes the network very fast
Well, this platform is something that is kinda new and not popular or know by everyone. Also, although the network is scalable, it can also sometimes runs slow.
NO.4 DO YOU THINK ALGORAND REALLY SOLVED THE BLOCKCHAIN TRILEMMA? EXPLAIN YOUR ANSWER.
Looking at some point u mentioned above about the algorand blockchain and how it aims to solve the blockchain trilemma, like how fast it is, it helps to provided scalabilty, security and decentralization. Transactions are very fast and produce thousands of blocks in a given period. The fact that it selects users randomly as long the have at least 1 algo token, not like other network where only the rich can have power over the network. Algorand aims to solve all this. The most important is the scalability in which it provides.
So with this i mentioned, i can say that algorand blockchain solve the problems blockchain network is facing today, which is the blockchain trilemma.
NO.5 DO YOU THINK PPOS IS BETTER THAN POW? EXPLAIN YOUR ANSWER.
Well, i can say that the ppos is much better tham pow reason is this÷
In pow, the system is very cost and on the other hand, people who own more token are those who are always successful in the network, they are the ones who usually runs the system, meanwhile those who that have enough continues to stay like that. This means that in pow to be successful you need to own huge amount of account so that you can join the cue. But ppos avoid all this things, in ppos, users are being selected randomly i.e as long as you own algo token and you are online, this mean that you are eligible or stand the chance to be selected in the network. So ppos doesn't reuqires only those with enough income to participate in the network, rather they are being selected randomly.
Also, in order to validate blocks in pow, it usually takes about 10 mins before are new block can be produced, but in ppos, it can validate new blocks within seconds, to show how fast the ppos is. So with all this i pointed out, i can say that the ppos is much more better than the pow.
NO.6 DO YOU THINK PPOS IS BETTER THAN POS? EXPLAIN YOUR ANSWER.
Well, pos i can say its much better than the pow, due to the pos was also created in other to eliminate some issues the pow is having. Also in blockchain trimlemma, the pos atleast are there to solve to among them. Now comparing to the ppos, is much better than all, because it solves everything about the blockchain trilemma, because its scalable, decentralized and secured.
Now lets look at how the pos works and we will compare it with the ppos. In pos system, before you can be eligible, those who validate blocks are required to sacrifies som amount of token in order to produce new block, now what if users dont have the amount of token required, that means they can't be among the validators, this shows that only the riches enjoys the system. Now comparing to ppos, all users are equally the same as they are being selected randomly as long as you have about at least 1 algo token and active , you can be select of validate blocks. With this, i can say that the ppos is much better than the pos network.
NO.7 EXPLORE AND EXPLAIN AN ALGO TRANSACTION USING ALGOEXPLORER.IO ( SCREENSHOTS REQUIRED)
To be able to explore the algo transaction, i will have to first of all visit https://algoexplorer.io/ , below is the screenshot on the homepage.
At the homepage, we can see some of the features like **Latest block , circulating supply , the price of algo token and many of it.
Then when you scroll down the page, that is where you can see rhe market chart i.e the price movement of algo token, also you see the latest block, you can click any of them to check it out.
When you scroll more down, thats where you will be able to see the lastest transaction that was carrieed out. To view all transaction, you can also click on the button view all transactions
You can also connect your algorand wallet app to the site, if you have one. Just by the top right corner of the page, click on wallet and select the device you uses and then connect it.
When you click on one of the lastest transactions, you will be able to see the transaction ID, the block etc.
At the same page, when you scroll down, you will see the sender address, the application ID and applications revision. See screenshot below.
NO.8 CARRY OUT AN ANALYSIS OF THE PRICE OF ALGO FROM THE BEGINNING OF THE YEAR TO THE PRESENT. VIA GRAPHICS (SCREENSHOTS REQUIRED)
I went to that same site, them at the homepage, you will see a statistics, click on it and select top statistics, the page will display, showing different charts, which i will show below, i set the chart timframe, from the beginning of the year. See screenshots below.
CONCLUSION
The algorand blockchain is a great idea in which the problem of blockchaim can be solved (blockchain trilemma). This provide all the 3 features, which means that the validators can make use of the three features in blockchaim which ate decentralization, scalability and security. The algorand aims to solve this problem. The lecture well detailed and i learnt a lot from it.
Cc- professor @nane15