How Algorand will become the ideal developer platform?
Algorand is a one-of-a-kind a permissionless, pure proof-of-stake blockchain that is capable of fast transactions without the complicated power requirements of other networks. Silvio Micali’s brainchild has quickly emerged as one of the most attractive platforms in the world for developers to innovate on. As Steve Kokinos, CEO of Algorand Inc., puts it:
“Building decentralized financial applications requires the right foundational technology and vision. At Algorand, we’re committed to continuous innovation and the development of technology that solves real-world challenges. With this release, new features and simple developer resources enable new use cases and broader adoption of blockchain overall.”
In this article, let’s look at why Algorand may soon become the breeding ground for decentralized innovations.
Key properties that make Algorand perfect for developer use
– Low computational requirements: Algorand’s pure proof-of-stake consensus protocol makes it very resource-friendly. Unlike the more common proof-of-work protocol, which is known for being extremely resource-intensive.
– High Scalability Potential: Algorand has a unique method of picking block proposers and selecting voting committees to ensure the active processing of the blockchain. This means that the entire Algorand community can confirm blocks and transactions with latency on the order of a minute while scaling to many users.
– Low Fork Probability: Even if there is temporary dissension within the network, Algorand will make sure that no users have different views of a confirmed transaction. In simple terms, this means that Algorand has a very low probability of forking.
– Random Selection: The algorithm randomly selects proposers and committees. This makes sure that the network isn’t controlled by a few miners or validator set.
– Governance: The governance of the system is up to a select few. Community token holders can change protocols.
Why developers will want to code on Algorand
Since developers are the lifeblood of the decentralized ecosystem, let’s look at the way they are being attracted to the Algorand platform.
- Developers can code in the Algorand mainnet with REST APIs.
- The pure proof-of-stake ecosystem will help in creating a fast and decentralized network.
- The Algorand Standard Asset (ASA) feature will make it possible for the tokenization and issuance of any type of asset on the Algorand blockchain, in a standardized way.
- The kind of assets that developers will be able to create using ASA are – fungible assets like currencies, stablecoins, and utility tokens; non-fungible assets like tickets; restricted fungible assets like securities; and restricted non-fungible assets like licenses and certifications.
- Algorand Smart Contracts (ASC1) are stateless smart contracts that offer numerous possibilities for governed transactions via simplified scripting templates. This is an important point, so it will require a section of its own.
Algorand Smart Contracts
ASCs automatically enforces rules and logic, while lowering cost and risk in the process. These contracts are coded using a language called TEAL (Transaction Execution Approval Language), which has been specifically designed to allow developers to build their own transaction rule structures and smart contracts. ASCs can be used for the following:
- Make sales entirely hands-free by automating the process.
- Collect crowdfunding funds for a project without getting directly involved.
- Enable the creation of securitized loans that are collateralized by the borrower. If the borrower fails to make payments, then the lender automatically gains ownership of the collateral.
- Set a condition where only accredited investors can make certain investments.
- Enables the creation of “multi multi-sig wallets.”
Lowering barriers to entry – The Reach partnership
Reach helps dApp developers by considerably lowering the barriers to entry. It does so via the following:
- Abstracting away the complications of the blockchain technology.
- Provide an environment where inexperienced developers can create and test out dApps and deploy them on various blockchain networks.
- Formally verify the outputs of the dApps to ensure that it doesn’t have any vulnerabilities.
Reach had already announced a working relationship with Algorand. Christopher Swenor, Co-Founder and CEO of Reach, said in a blog post:
“Algorand and Reach Platform have a shared vision for real-world application and adoption of blockchain through performance, developer enablement, and simple deployment for applications of the future. Together, the organizations will be working together to support efforts for faster and stronger blockchain development.”
Algorand is backed by some leading cryptocurrency and tech funds, including Metastable, Sparkpool, MultiCoin Capital, AlgoCapital, or even NGC. By incorporating ingenious scalability innovations, Algorand has created a perfect platform to build large-scale dApps. Plus, the strategic partnerships that they have made with the likes of Reach has made Algorand the platform of choice for developers around the world.