Algorand Wants to Prove Its Protocol Can Beat Bitcoin’s

- Advertisement -

Algorand’s consensus protocol, though, will generate a drastically higher throughput even on basic infrastructure, and in a truly decentralized way.” which is “necessary in a world in which companies like Visa process thousands of transactions per second, Jing Chen, Algorand’s chief scientist, tells ThirtyK.

Algorand’s PoS consensus protocol also eliminates the need to resolve forks, which can occur in other systems when competing blocks from multiple users are verified.

To ensure that control is not concentrated in any individual or group, new lotteries occur for each step in Algorand’s consensus protocol. In contrast, “many existing PoS protocols have hidden forms of centralization, Greenstein says. “They either force users to delegate their participation to a small group of delegates, or require delegates to lock up their stakes, thus skewing participation to those with more money.”

Even PoW, which aims to be decentralized, concentrates the power to control new block creation in a few large mining organizations, he adds.

Can PoS Replace PoW?

“Not only do we believe proof-of-stake protocols can replace proof-of-work, we believe they must,” Greenstein says. Therefore, Algorand will build its own cryptocurrency, and will provide an open, decentralized infrastructure on which developers may build their own apps or cryptocurrencies.

PoS in general isn’t perfect, however, according to some experts.

- Advertisement -

While I wouldn’t rule out PoS as a solution to the energy and speed problems inherent to the PoW strategy, I’m skeptical that PoS will be the technology of choice,” says computer science professor Hein Meling at Lawrence Berkeley National Laboratory, on sabbatical from the University of Stavanger, Norway. Specifically, PoS’s greater complexity may compromise security.

Algorand says it is trying to eliminate such issues. Development of pure PoS protocols hasn’t been viable before, but Algorand’s recent advances make it possible now, Greenstein says.

Previous Articles:

- Advertisement -

Latest News

Amber International Raises $25.5M to Grow $100M Crypto Reserve Fund

Amber International Holding raised $25.5 million in a private placement to expand its $100...

Traders Flock to Hyperliquid Apps Amid Hopes for Airdrop Rewards

Investors are moving millions into projects on the Hyperliquid blockchain in hopes of future...

Bank of Russia Rules Out Cryptocurrency Investments, Cites Risks

The Bank of Russia will not invest in cryptocurrencies.The central bank sees cryptocurrencies as...

Saylor Sets Sights on Making MicroStrategy a Leading Bitcoin Bank

MicroStrategy aims to become a major Bitcoin-backed bank, following early predictions from Hal Finney.Founder...

Senator Lummis Unveils Crypto Tax Bill With $300 Exemption Limit

Senator Cynthia Lummis introduced a bill to give U.S. crypto users new tax benefits.The...

Must Read

26 Best Investment Audiobooks on Audible

Looking to expand your financial knowledge? Me too..When I first started investing, I was completely lost. There were so many terms, strategies, and theories...