Algorand continues to develop blockchain technology. Algorand, which brought many innovations in 2020, gave signs that it will continue with its latest announcement.
Algorand has updated its smart contracts in accordance with DeFi in recent months and rebuilt its technology accordingly. In addition, it implemented a new concept called Re-Switching. Re-keying: The public wallet address remains the same, helping to regenerate the Private Key. While this technology transfers the Algorand wallet account to another person, it secures the account of the person who receives the account by regenerating the Private Key.
In many articles we have written before, we have said that Algorand puts itself forward in this way by giving importance to technical and technological issues. Algorand announced that he will double his performance with an announcement to prove this. The announcement and article were written by Algorand founder Silvio Micali. Silvio Micali said in a statement:
Algorand is growing. Today, an average of 500,000 transactions are posted per day on our chain. More than 500 companies are busy developing applications on Algorand, leveraging our unique layer-1 smart contracts and other functionality that enrich our platform. Its applications will soon create many new processes. Therefore, while continuing to add new functions to Algorand, we improve our performance as follows without compromising decentralization.
Silvio Micali says that the interest in the Algorand blockchain project is growing and that it is necessary to develop the technology that is currently available to keep up with this interest. In other words, he does not want to bring Algorand down to Ethereum’s mistake about scalability, which is constantly criticized. As you know, it was an algorithm that works with Ethereum POW. But after scalability problems arose, he took steps to switch to the POS system. They are even trying to do this within layer-1, similar to the system that Algorand has already achieved. Ethereum has not yet achieved this. In Algorand, both this system is working correctly and it is working to increase its current speed.
Algorand 2021 Performance Improvement
The blocking offer time will remain 0.5 seconds. (Our block size will increase from 5,000 to 25,000)
Block completion time will be reduced from 4.5 seconds to 2.5 seconds.
The finalized TPS will reach from 1,000 to 46,000.
Algorand currently handles block events in 4.5 seconds. This speed will drop from 4.5 seconds to 2.5 seconds. Almost 100% Increased Performance. This will make Algorand one of the fastest blockchain networks. This development will bring new projects to Algorand.
Increasingly, “performance” is a loosely and freely used word in the blockchain universe. Of course, speed matters.
The main purpose of a blockchain is to provide a complete and immutable sequence of transactions. The quick block bid is equivalent to saying quickly “your money is on the way”. Certainty is equivalent to having “money in your hand”.
How will Algorand keep pace
Algorand includes up to 5,000 transactions today and will include up to 25,000 transactions in 2021. It takes time to roll out a major enhancement. To speed up the processes of proposing and finalizing a new B block, we developed a more compact way of identifying it.
After adding a B block to the immutable record provided by the Algorand blockchain, B’s transactions should be clearly explained. In fact, such a B block can be consulted years later by people who have no knowledge of our shared context. But during the production of B, we can find shorter ‘names’ for transactions, and indeed, we are both the same transactions at any given time, plus or minus just a few of them, due to the spread of transactions across the network.
For example, for most transactions T, I can just send you the 32-byte hash of H (T) to let you know that the block I propose contains T rather than writing the T in its entirety. In fact, practically speaking, the hash value of no two transactions is the same.
To improve our performance, we will reduce these 32 bytes to just a few bits by taking advantage of the very specific working methods of the Algorand network. In Algorand, accounts do not directly exchange messages with each other through peer-to-peer Communication. Accounts send the messages they want to spread to the relay nodes.
Relay nodes spread messages together and send them to the accounts with which they are linked. Thanks to a deep feature of our protocol, security against random network segments, Algorand’s architecture provides significant efficiency without requiring additional trust.
Anyone can volunteer to become a migration node, and each account connects to a few (for example, 5) migration nodes of their choice. If unsatisfied with the services received from one of the relay nodes, an account simply disconnects and connects to another relay node of its choice instead.
New Announced Algo Dynamics May Cause Algorand’s Price Increase
While Algorand develops its technology, it also reorganizes the Algo Dynamics. In the announcement made last week, it was mentioned that the Algorand Foundation is rescheduling the 2021 Algo Dynamics.
The Algorand Foundation today proposed a revised long-term Algo Dynamics model. Designed to run for more than 10 years (until 2030 and beyond), this new model will focus on ecosystem support, community incentives, and decentralization of decision making and governance on the Algorand blockchain.
He kept the past goal of the Algorand community. At the center of these programs will be a new community reward system that benefits current and future participants who commit to participate in the governance of the Algorand ecosystem and potentially demonstrate their commitment by locking down their long-term Algo.
This new reward system and ecosystem support offer will be funded by the allocation of unassigned funds from within the 10B Algo printed in Genesis and distributed using a new, fully decentralized decision-making process.
1. Community Rewards
2.5B tokens will be initially locked in and allocated to participation rewards, which will be distributed over roughly 10 years. Tokens will be injected into governance reward mechanisms through the smart contract that runs automatically.
The recipients of these tokens will be those who agree to lock the tokens to support governance, in the spirit of Silvio Micali’s Decentralized Governance proposal.
The distribution of these tokens will be carried out in a broader, long-term model optimized to control inflation and achieve scarcity over time. For more detailed information, please read Massimo Morini’s Algo Dynamics.
2. Ecosystem Support
1.25 billion tokens are being allocated for extended ecosystem support and will be locked in a smart contract. These tokens are opened periodically for no faster than 10 years and for a period of no more than 200 million unlocks in any year.
Unlocking of tokens will occur as part of the overall token distribution plan laid out in Algo Dynamics.
Unlocked tokens can be used by the Foundation or other partner organizations to support grants, strategic initiatives and R&D projects put forward for approval.
The Foundation’s proposal for the allocation of ecosystem support tokens among different types of organizations is described in Massimo Morini’s Algo Dynamics and will be implemented with community engagement as suggested by Silvio Micali.
For any token not used in a given period, it will be set to re-lock and unlock monthly after the first 10 years.
As we come to the end of the article, you can participate in the lottery for the award by commenting under this article and registering on the specified website.