ALGORAND AND THE BLOCKCHAIN TRILEMMA, CRYPTO ACADEMY S5W4 HOME-WORK POST FOR@NANE15.
Introduction
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The world is moving to a greather height day by day, with the inception of wonderful technologies we see now I will say we are really in for a transformation that will lead to a greather height in a long run, for a successful development of any kind we need security, and accountability, this two parameters are key for massive upsurge.
Today 50% things we do are centralized on the internet, and blockchain technology have made it eazy and much easier for us to access things in an open source, currently now we have blockchain in the medical sector at this point individuals can be at the comfort of their homes and access their health status, no thank's to covid19 though.
Blockchain is a ledger that stores informations of various kinds, informations stored in a blockchain cannot be deleted or altered by anyone, cryptocurrencies that can be Exchanged to Fiat are kept on blockchain's traded, and transfered from one wallet to another, blockchain's are different so as their models of operations differs this brings us to today line of topic Algorand blockchain.
What is Algorand blockchain?
Algorand blockchain is a blockchain that makes it possible for everyone to build on, it was officially invented in the year 2019 by a popular computer scientist called Silvio micali, one of the main objective of Algorand is to solve trilemma issues on a long run thereby achieving speed, decentralization, and security very important for a blockchain to be effective it needs the three basic things listed here.
Micali who invented Algorand branded it to function as a payment model system with fast and reliable transactions speed, thereby achieving great and instant rigidity as to the rapid nature of transaction been perform on the network, putting to greather contest Algorand produces 1,000 Transactions just in a single seconds.
It won't be overemphasized that we have so many consensus mechanism all around but in the case of Algorand it makes use of Proof of stake (PoS) consensus mechanism, it shares validator rewards to anyone who holds the native token called Algo crypto currency.
In Algo blockchain individuals can stake and acquire APY, in a long run, Algorand has the capability to host Decentralized application DApps and on the long run provide scalability and security, as a result of high wage of Etherium gas fee, so many person's have diversified their intention to looking else where for a sustainable and low Transactions fees all this are provided by Algo blockchain.
In Algorand individuals can create their own token with the use of Algorand standard assets, some stable coins have the capability to validate nice transaction throughput with lesser transaction fee.
What is PPoS
Algorand makes use of pure proof of stake (PPOS) consensus allogrithm officially built by Byzantine consensus, in this facets user's have the proportionality as to block selection as to the number of tokens to be staked in the ecosystem, the selection of user's isn't in an open source as they are secretly chosen to vote courtesy block proposal.
The approach that comes with (PPOS) plays a very vital role in the security of the whole ecosystem and the economy at large, the whole ecosystem is seen very much secured and trusted as the Fiat rests on a safe hands, the security of the whole economy isn't subsectful as some user's can serve and prevent other users from carrying out their various Transactions.
The Rich getting richer and the poor getting poorer synerio that works on other proofs, their is a difference that exists courtesy (PPOS), this particular one has an egalitarian concept, from the onset the first user case is Algorand which no doubt was officially invented by micali.
Explain the advantages and disadvantages of PPoS
Everything that comes with great prospect always have it's up and downs, merits and demerits in a sustainable run, the case isn't different here, pure proof of stake created by micali, the success agenda that comes with POS blockchain technology is practically sustainable in a long run across sustainability issues.
| Advantages | Disadvantages |
|---|---|
| PPOS was created to solve the compressional issues of POS networks, the initiative was galvanized by professor micali. | PPOS protocol was officially built on byzentine mechanism, token holder's are bound influencer's as to the models of staking, users are practically picked randomly instead of selecting user's with the most token. |
| PPOS have the merits courtesy online user's as anyone can get selected, this will surely accelerate the quality of the blockchain technology and thus make it more secured. | PPOS doesn't have a specific number of selected nodes that can be seen as delegates with so motive of creating new blocks, on like what we have in the DpoS and other consensus mechanisms all around. |
| PPOS concept is egalitarian this means that it totally eradicates the talks about the rich getting richer and the poor getting poorer as validators are been selected randomly. | this protocol selection isn't grouped as a validator can be selected never minding the viscosity of your stake, since validators aren't grouped makes it impossible for hackers to gain access to the system. |
Do you think Algorand really solved the blockchain trilemma? Explain your answer
To answer this question I will say yes reason been that it employed randomness to solving the trilemma issues, Algorand achieved this fate when validators started getting selected randomly as a result of token holder's, and this wasn't done as per the viscosity of the token within your domain.
when validators are selected randomly it totally eradicates the possibility of hackers gaining access into the system, thereby making the entire network to keep a rely on algorithm that selects automatically the facets of nodes that will be added to blocks.
At first when blockchain came to lime-light the first talks was on how blockchain trilemma is going to be solved, the key aim was scalability, security, and decentralization, this three wasn't achievable without one going in place of another.
Algorand as we speak packaged a way at which blockchain trilemma was solved the models was officially galvanized by professor micali, here I will talk about the issues sorrounding scalability, one main issue of bitcoin was scalability, each time bitcoin are transacted it needs time for confirmation and the process is practically slowgish.
Another crypto came to lime-light to provide more scalability which is Etherium, but this issue with it is decentralization compromise, nodes operators power overseed's the network, the same models is very much true courtesy bitcoin.
Do you think PPoS is better than PoW? Explain your answer
I will answer this question straight ahead I think No, I don't think PPOS is better than POW, we all know that Algorand makes use of pure proof of stake (PPOS) consensus allogrithm officially built by Byzantine consensus, the vital aim of PPOS is that user's have the proportionality as to block selection as to the number of tokens to be staked in the ecosystem, but in POW the case is totally different.
The POW main objective is preventing the act ofdouble spending, which is a major problem to the Crypto works today, now you will begin to ask what is double spending it comes to fruition whenever a token is spent twice e.g sending BTC twice, so many cryptocurrencies today makes use of PoW as their consensus mechanism, thereby providing enermous security to crypto ledger.
PoW was the first consensus mechanism to come to fruition, uptil now as we speak is still in domination more than any other consensus mechanism around, it was officially introduced by satoshi in the year 2008.
Extended few reasons why I think PoW is better than PPOS
Below are my personal reasons on why I choose PoW over PPOS consensus mechanism, and my reasons are very personal, courtesy of many other crypto PoW found the basics granting decentralization and secured models.
proof of work doesn't deal of random selection, Instead it requires collective members of the network to aline together in order to expanciate the network in general solve mathematical puzzle, by so doing hackers will totally be restricted to gain access to the network.
PoW majorly is used in Crypto mining with the main aim of Transactions validation and mining newer token, as we know miners works in the blockchain.
PoW grants bitcoin and many other Crypto the ability to process Transactions on the blockchain in peers without any third party involvement.
The More miners acessing the proof of work PoW the more energy levels increases creases.
Do you think PPoS is better than PoS? Explain your answer
Without too much talk I don't think PPOS is better thank PoS mechanism all round and as the homework progress I will give my explanations in a greather height.
We all know that cryptocurrencies are decentralized, meaning they aren't controlled by anyone, POS is a form of consensus mechanism used in validating Crypto Transactions, Investors has the capability to stake the coin within their posession, on-like what we have in PPOS where owners of coin are selected randomly.
Validators here have the power to access their coins within their posession and also include then into a blockchain, I will say this consensus mechanism is the opposite of PoW, in the choosing aspect crypto PoS selects a validator nodes that will reveal a particular block, the accuracy of the transaction inshringed in the block will be accessed by the validator.
ADA a popular cryptocurrency makes use of PoW consensus mechanism, let's say I @ruthjoe owns ADA I can personally stake it and along the process set up the validator node. So for me I think PoS is better than PPOS consensus mechanism this is my honest opinion.
Explore and explain an ALGO transaction using algoexplorer.io ( Screenshots required)
Exploring the Algo Transactions you need click here, after which you can proceed with your accessment, I gained access and below was the result of my honest accessment.
Visiting the https://algoexplorer.io/ you are bound to see the overview of the total transactions been executed, time and latest blocks and other relevant informations, view below and enjoy the fun.
From the screenshot's provided you will see the latest block at the time of writting this post the latest block hash was.
Latest block hash
3QV76MEYH74XTNCRA66PPYRKOM5KZESHSJ6XUNVL5NG5LHOOGFJQ
Block Overview that is informations associated with latest block number #17957210, we also have other relevant informations associated with the blockchain Overview, blockchain have really made everything seen in a public place more transparent.
https://algoexplorer.io/
This is all about transaction Overview, is all about the latest transaction officially been conducted, looking at it below you will see the Transaction ID, remember today is 11th Dec 2021.
At the time of writting this post this was the latest Transaction ID, if you want to see a clear Overview of it what you need do is to copy the link, paste it at the search axis of the https://algoexplorer.io/ and you will see the latest and all that comes along with it.
Latest Transaction ID
EFDDZTKP3JXTE7KYOV6OE6WC5Z5Q6WWYZO56GJMGUUXNBUSKMRNA
Carry out an analysis of the price of ALGO from the beginning of the year to the present. Via graphics (screenshots required.)
Carrying out this Analysis we must first realize that this year began from January 1st 2021, and today's date is 11th December 2021, Algo blockchain runs in an open source, it's motive remains to solve some vital Crypto problems it uses a consensus mechanism called proof of stake PoS.
As at the time of writting this post Algo crypto price stood at $1.50 with a -4.06 in the last 24 hrs,
https://www.coindesk.com/price/algorand/, dated 01/01/2021 till date
Reading the price of Algo courtesy the chart you will experience a little downward retracement, looking at the structure there was a formation of higher-lows which signifies a downtown, on the 26th of April 2021, back then Algo price traded at $1.24 here we are talking about the near middle of the year, from the starting of the year there was a decline in price.
One major models that influences the price of crypto is bitcoin I call it the father of all other coins in general, as at April this year bitcoin was a little down, it practically affected other coins in general.
From the month of September 2021, price of Algo climaxed to a new high, which saw Algo price move up to around $1.60. I will list the price of Algo from January 1st 2021 till date in a comprehensive list check it out below.
| Algo/year | price |
|---|---|
| Jan01/2020. | $0.2175. |
| February/01 2020. | $0.2476. |
| March 01/2020. | $0.3333. |
| April 01/2020. | $0.1547. |
| May 01/2021. | $0.2109. |
| June 01/2021. | $0.2347. |
| July 01/2021. | $0.2085. |
| August 01/2021. | $0.3253. |
| September 01/2021. | $0.5037. |
| October 01/2021. | $0.3466. |
| November 01/2021. | $0.2495 |
| December 01/2021. | $0.3289. |
From the data provided I selected the very first day of each month, if you look very well you will understand that price of Algo fluctuated most times, that doesn't change the fact that the current price at the time of writting this post stood at $1.50, below is the chart taken from coin-marketcap official home-page.
Still the price of Algo standing at $1.50 at the time of writting, with a negetive courtesy it's formation, looking at the chart Analysis above which clearly is called market structure, I'm seen a clear downtrend, which clearly shows a lower-low formation.
Conclusion
Thank you very much professor @nane15 you did well explaining in detail trust me I really learnt alot from you professor, from my homework I did state that Algorand is an open source blockchain that operates courtesy PPOS consensus allogrithm, founded by Silvio micali.
I also hinted on PPOS consensus mechanism, which I clearly stated that it is built of benzytine consensus mechanism which makes it possible for everyone to build on, PPOS clearly means pure proof of stake, the selection as to validators are done randomly totally different from other consensus mechanisms.
This lecture is a good one thank you very much professor @nane15, note all images used are properly referenced courtesy copyright free source, thank you once again looking forward to your review, yours truly, @ruthjoe.
Cc;@nane15.