Why A Completely Decentralized Ecosystem is Possible with Algorand
While the internet continues to take little steps towards decentralization, the world of financing has made consistent strides towards its complete decentralization. Evident of this approach is the introduction of several decentralized finance platforms, blockchains, and decentralized applications.
Among these, one blockchain protocol has been consistently outstanding with the technologies and innovations it continues to bring to the table. This blockchain is Algorand.
Algorand is the first open-source and permissionless blockchain protocol that uses a pure proof-of-stake algorithm to reach consensus. The network’s principles are anchored in its commitment to building a decentralized, secure, fast, and highly scalable network able to meet its users' demands.
Complete decentralization does not happen overnight; it takes consistent innovations, modifications, revisions and partnerships — according to the scope of learning, experiments, experiences, and feedback — to fully achieve it. Algorand has shown that they are not shy about these requirements, and the network continues to take giant strides towards the achievement of its ultimate goal of complete decentralization.
Some Achievements of Algorand
The years following the introduction of Algorand has witnessed a continuous evolution of the network. Countless innovations have been introduced, and many have been revised and upgraded. The network has seen so many technologies. Some of them have existed, some have been upgraded, some are still existing. Examples include the Proof-of-stake consensus algorithm, the Byzantine Agreement, the pixel signature scheme, the cryptographic sortition model, the gossip protocol, the leader selection protocol, Layer-1 smart contracts, atomic transfers, Algorand Standard Assets (ASAs), fast catch-up, Rekeying, Stateful smart contracts, AlgoSigner, Algodesk, AlgoExplorer, ORE ID, REACH, to mention a few.
Through these innovations, developments, and groundbreaking technologies, Algorand has not been alone. If there is any network that understands the importance of valuable partnership, that network is Algorand. Some of its many partnerships have led to the development of some of the innovations listed above. Algorand partners consist of a diverse global group representing various areas such as technology, venture capital, cryptocurrency, and financial services communities.
There is also the Algorand Foundation, a foundation concerned with the consistent improvement of the network. It awards development grants to institutions and companies with proposals to further develop the Algorand ecosystem. It is worthy to note that some of the unique technologies existing on this platform came from grants awarded to developers.
All that Algorand has done and what it keeps doing has been for one purpose — decentralization. The network, upon inception, became the first open-source layer-1 permissionless blockchain in the world. Several other emerging Blockchains continue to align their technology with the ones available on Algorand.
After that, there came the issue of solving the blockchain trilemma — Decentralization, scalability, and security — and Algorand showed that it has a way of making problems look less like problems. The network achieved protocol decentralization, real-time speed, and high scalability under the most secure environment; thus, it achieved and continues to perform what many other blockchains thought was only possible theoretically.
Not only did it solve these problems, but it also made things as easy as it could get, eliminating the need for supercomputers and storage to achieve secure consensus.
Meanwhile, Algorand continues to take giant strides towards the complete decentralization of the network. Silvio Micali announced a proposal on inclusive and innovative community governance, a kind of governance where anyone can participate, just as it is in the network’s consensus participation mechanism.
In this type of governance, the foundation facilitates, but the decisions are taken by community members who choose to govern the network. Indeed, it is fair to say that a decentralized finance network's democratisation truly began with Algorand — user participation on any network aspect is purely voluntary.
Moreover, there is no need to emphasize Algorand’s commitment to its goals. Consequent to the new governing proposal, Algorand announced a revised Algo token dynamics to cater to the new governing mechanism’s needs and provide the community with tokens that will support the development of innovations on the blockchain. All towards the advancement of the goals of complete decentralization.
These innovations come with unique reward packages in which the rate of rewards is determined in a purely decentralized manner through a process called the Dutch auction.
A decentralized ecosystem has always been the goal of the Algorand blockchain. Thus, the actions of the blockchain have always been directed towards the advancement of this goal. The innovations introduced on the network have also been in alignment with this crucial area of decentralized finance. Some of these innovations and technology have been outlined in this article, all fulfilling a particular place towards advancing this goal.
However, as mentioned earlier, complete decentralization does not occur in a twinkle of an eye, but if any blockchain is better positioned to deliver this mandate, it is Algorand. Nonetheless, Algorand has achieved decentralization on the protocol levels: users have full control of their keys, their wallets, DApps, and other features available on the protocol.
“Perfection is the enemy of the good.” According to Algorand’s founder, Silvio Micali. Therefore, “We should start with an important area; learn; correct, if necessary; and then extend governance decentralization to more areas, with gained confidence and experience.”
Algorand has already attained decentralization in the protocol area. Decentralization of governance is next on the list. With time, innovations, and experiences, complete decentralization will be achieved.