Welcome everyone yet to another refreshing lesson from this great academy by a great professor too on the Algorand Blockchain.
Firstly, from this lesson, we can perceive a perfect blockchain that is free from the blockchain trilemma since the Algorand Blockchain aims to be decentralized, highly scalable and Secure.
My work is below professor !
1.) The Algorand Blockchain :
In June, 2019, an award winning professor, came up with the idea and perfection of this Algorand Blockchain which we speak about today. The name of this man is Micali Silvio.
The Algorand Blockchain is a blockchain that works with a unique protocol known as the Pure Proof of Stake, and perfects decentralization, network security and scalability with the use of smart contracts. Some weeks ago we were shown the blockchain trilemma which the Algorand Blockchain, shows to have solved in all ways. In the Algorand Blockchain, more than thousands of transactions are processed per second making it a very scalable blockchain.
Not withstanding that, selection of users who generate new blocks is done on random basis ie every token holder in the blockchain is entitled to its governance which leaves the blockchain decentralized too.
Finally there is premium security for user tokens and data which completes this perfection and makes the Algorand Blockchain great to use!
2.) Introduction to the Pure Proof of Stake.
The Pure proof of Stake, is the network protocol used in the Algorand Blockchain and for now remains the most advanced network protocol when it comes to Blockchain activities.
What is the Pure Proof of Stake :
The Ppos, is a network protocol, built on the Byzantine consensus that helps in the perfection of the three basic blockchain necessities which are decentralization, scalability and network security.
To explain this further, I'll be explaining how the Pure Proof of Stake protocol perfects the basic features of a blockchain
Network security :
The Ppos perfects security based on governance of tokens and for influence on Blockchain to be made, a sparce amount of the blockchain would need to be controlled by the manipulator and by this method, the Ppos protocol leaves the blockchain in the hands of no particular user
Decentralization :
The Ppos ensures decentralization on its blockchain by its mode of achieving consensus and in the Ppos protocol.
Firstly, we know that in the generation and processing of blocks, users must have a share of algo tokens and based on how the stake of algo tokens, users are eligible to be selected randomly to be block validators making the system totally decentralized and able for any token holder to be a validator.
There are different set of validators who ensure that the validation on the network isn't maliciously done and voting is properly done
Scalability
Scalability is another great part that the Algorand Blockchain does effectively and this is evident in the fact that, there are thousands of transactions validated per second andcreation of blocks almost every 5 seconds on the network
3.) There are major advantages of the Ppos protocol and minor cons of the Ppos protocol
I'll be taking on the advantages Firstly and among the advantages, we have :
Advantages
Decentralization :
The nature of the Ppos protocol, allows for every holder of the native tokens to be a participator in the random selection of block processors and validators which removes the monopoly of validation in blockchains
Network Security :
The entirety of the blocks on the protocol, are left unknown to users and so, in hack cases, the specific node to attack is unknown and so the nodes are protected through this way
Scalability :
Transactions done on the Ppos protocol, are done in higher numbers and with less computing power including the fact that there are less transactions costs to the transactions done
Disadvantages
The Ppos protocol too has no serious disadvantages, but just little areas that need to be touched for better performance of the blockchain.
Firstly, the Ppos protocol hasn't been adopted by many blockchains and for now, has a very small area of operation compared to its huge benefits of solving the blockchain trilemma
Secondly, it's rumored to be centralized since some of the nodes on the protocol have a particular source of operation
4.) Algorand solving the Blockchain trilemma :
The question on whether or not, Algorand solved the blockchain trilemma is clearly a yes to me since it perfects and proffers solutions to the basic blockchain issues.
Trying to explain this further I'll be mentioning, the fact that users are picked at random to ensure that there is no monopoly of the blockchain governance which shows decentralization.
In the privacy of user nodes and its protection from attack, we see it solve security and finally, in scalability, the voluminous amount of transactions handled by its blockchain is another great aspect of its importance
5.)The advantage, that PoS has over PoW
For the opinion poll, my yes can't be under-emphasized as even one under the influence of soap-lather would see clear as crystal the benefit and advantage, that the Ppos has over the PoW.
It is always said by some controversials of good the PoW is by granting of network security and decentralization but the demand of huge blockchain energy and mining power by this protocol is indeed a great minus and not withstanding its slower nature of processing transactions which brought about the PoS.
To be rational in this speaking, the alternative to this PoW which is the PoS is even subject to the Ppos since the PoS even had to sacrifice decentralization in a way but on the other hand, the Ppos, allows every system staker and user, a chance of governance in the blockchain (decentralization), absolute security of tokens and data and finally great network speed and faster transactions
6.) Do I think, Ppos is better than PoS, explanation for my answers :
Personally, I consider the Ppos a better protocol to the PoS and this is due to the fact that,
From its name Pure proof of stake, we see that it tends to handle /advance effectively and more efficiently the features of Proof of Stake.
Just like we know, in a bid for better scalability, the Proof of Stake sacrifices decentralization in a bit and this feature is utmostly covered by the Ppos in the aspect that there is random selection of block processors and validators which tends to solve the issue of centralizationEven speaking about the scalability, that the PoS majors in, the Ppos does and manages better, faster and cheaper transactions than the PoS does including faster creation of blocks on the blockchain
The Ppos protocol is unique, and due to the fact that it hasn't been put into use by several blockchains, there is first hand authenticity in its operations and all these are facts that leave me preferring the Ppos over the PoS
7.) Exploring and showing an algo platform with its screenshots
To get to the algo platform, I'll use the algo website link provided in the lesson and I get to the over view that shows transactionary information about the Algo token.
To confirm I'm in the right interface, I see features like tps (transactions per second), the algo price, the latest blocks, total supply etc
- I then go over to the part that shows latest transactions and when I'm there,
- I click on the latest transaction there and all the details about the transaction is shown on the platform
8.)carry out an analysis on the price of algo from the beginning of the year till present with graphics
Let's start with the current price of the algo as we can see below added with the supply and volume information.
The screenshot below shows the price chart since 2021
The region where i made a boundary with a rectangle is the total behaviour of the Algo/Usdt in the year 2021. If you watch closely to the ending of 2020, the price was ranging on a very support until January, it began with a bullish movement heading towards a major resistance that is up.
Until it to the 14th of february 2021, it got to the resistance and it bounce back forming a bearish trend. Until the 27th of februauy it got to the major support that prevented it from going downward further. It stayed on that support, ranging for some months, until on the late period of march it made bullish movement back to that initial resistance.
By the month of may it took another bearish movement and broke through the major support and went down further, creating another new support and that was the lowest level the AlgoUsdt got in the year 2021. The price was ranging for some period of month and took another bullish trend and broke through the resistance and broke through the another resistance and became the highest point which the pair ever reached in the year 2021.
From the month of october, the support has being holding the price firmly and the price has being have some consolidation and currently it has a price of $1.51. From the analysis the price will break through the support by 2022, so we should be expecting a further down fall of the price by 2022
CONCLUSION
The adoption of the pure proof of stake protocol ,by other blockchains would lead to nothing else but better and more effective transactions digitally .
The Algorand blockchain is the first of its kind to make use of this protocol that settles the issue of decentralisation, scalability and security and with its unique ways of settling them ,I'm just left at saying that it's a great one .
The adoption of more blockchains and creation of more users cases by this protocol would be a very great benefit to the future of blockchains .
Have a nice time ahead !
Image reference :
CC
@nane15