Algorand Protocol Guarantees Rapid Finalty Of Transactions - CoiNews


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Sunday, July 26, 2020

Algorand Protocol Guarantees Rapid Finalty Of Transactions

The protocol algorithm has a unique design and specifications which make it stand out, and qualifies it as the perfect tool for transactions. Before Algorand came along, a lot of Blockchain was previously operated on the Proof-of-Work (PoW) consensus algorithm, as its consensus mechanism, of which many are still using. This keeps taking the Blockchain industry aback, keeping them from attaining the supposed height in the financial sector and the digital space. A better look into these inefficient Blockchain will really give you the insight you need and reveal the significance of the Algorand Blockchain.

The Reguler Blockchain
This consensus mechanism (PoW) is one which allows the miners to solve crypto puzzles, as a way of mining blocks on the system. It also determines the miner to whom the reward will go, as it rewards the first miner to correctly solve the puzzle, which in turn mines the block. So, speed and high computational power is needed greatly in this type of mining method, if a miner is to benefit from it and earn rewards. Neglecting the demanding issue of high mining equipment, which most users can not afford, another flaw of this mining method is the unavoidable fact that there could be cases where more than one miner gets the solution to the puzzle at the same time, which obviously brings a conflicting situation. So, as a way of rectifying this, the Blockchain involved ends up dividing into two, as a way of compensating the two miners. This particular outcome is a big issue in Blockchain transactions as it leads to a series of problems in the Blockchain.

Problems Of The Blockchain During Transactions
● Uncertainty Of Transactions
The fact that the Block is split into two, creates a great uncertainty for its users, as they are not fully aware of the real outcome. When receiving payments on the Blockchain for instance or any other kind of transaction, due to the fact that there exists two chains, transactions on the Block are not guaranteed, because there is a great tendency that the particular chain does not survive, making the supposed payment become null.
Delayed Transactions
As a way of avoiding loss of funds caused by the uncertain transaction finality, the users of the Blockchain have no choice but to wait to successfully confirm their transactions. This takes away one of the core features of the Blockchain, increased speed of transaction, leaving the users at the mercy of the inefficient system also making transactions to take unnecessarily long.
Double Spending 
As a result of the uncertain outcome of transactions, caused by the inefficiency consensus mechanism, the opponents of the 
The users on the other chain leverages this to carry out double spending of their funds. The best way to avoid these challenges posed by the PoW Blockchain is to avoid it entirely.

The Algorand Protocol And How It Is Better
The developments and achievement of Algorand will show you that it is obviously not a new system in the Blockchain industry, and its Protocol is indeed a force to recon with, when trying to make comparisons between the Algorand Protocol and all other Blockchain in the system. So, as a superior Blockchain, the Algorand Protocol was tailored to rise above all these challenges which the users have to put up with, when using the ordinary Blockchain. As a way of solving this discrepancy on block generation and transaction execution, it was created with a different kind of consensus mechanism, a type which is not used in other systems.This consensus mechanism is known as the Pure Proof-of-Work. The Pure Proof-of-Stake eliminates the need for high computational power before blocks could be mined and not only that, it also solves the aforementioned problems, by facilitating transactions finality.

Here Is How It Works...
The PPoS allows the miners to create and validate Blocks on the Blockchain, by simply staking their coins on the system. By doing so, the mining power resides with the user with the highest number of staked coins, and so the reward goes to this miner, upon the generation of a Block. This is completely different from the aforementioned PoW used on other Blockchains right? Well, it's not just different but also better because it never breaks into two or as it is called, forks, as there is never a case of simultaneous generation of the same Block. This consensus type brings about the transaction finality of the Algorand Protocol because, once a Block has been chosen, it is irreversible or alterable, since it is the design of the Blockchain, to not entertain more than one block at a time, during transactions. The transaction finality guaranteed by this system will indeed improve Blockchain transactions and guarantee the security of users' assets and eliminate the risk of double spend, thwarting the efforts of dishonest players in the system. Another amazing thing which the Algorand Protocol ensures as facilitated by its design and use of the PPoS is that there is no delay for the transactions to be finalized, improving the speed of transactions on every system which uses it.

Summary / Recap
Transactions finality has been a major issue in the Blockchain industry, as there seems to be no advanced system enough to handle it, but all that is now in the past thanks to the Algorand Protocol. Transactions are now better with Algorand because it makes it fast, guaranteed with great certainty and finality.

Official Websites Of Algorand:
Author: Gifton Nwokoro

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