Algorand has undergone an upgrade which places its Layer 1 protocol as one of the fastest in crypto. Proof of stake network Algorand’s upgrade involved making changes in the network’s mainnet transaction capacity.
After the upgrade, the transaction capacity has shot up to 6,000 transactions per second (tps).
The blockchain has also introduced cross-chain communication and transaction speed improvements with this latest upgrade to its protocol.
This upgrade mainly introduces State Proofs into the mainnet of the crypto and that meant the introduction of trustless communication between different blockchain protocols.
The current processing speed of the cryptocurrency was at 1,200 and now it has gone up to 6,000 transactions per second.
Along with these major changes, this upgrade also brings in the provision of many new tools for developers.
They include on-chain randomness capabilities for decentralized applications (DApps) running on Algorand.
The On-chain randomness has been a key feature of the Algorand PPOs consensus, in this consensus, the network validators are chosen at random and not at the respective amount of staked Algorand tokens.
Introduction Of State Proofs
Algorand’s upgrade has added the State Proofs to the network and made trustless cross-chain communication possible by providing security to multiple blockchains without the need of a third party.
In order to understand what State Proof is, it is a new technology in which the market will solve the issue of reliance on blockchain networks on bridges and centralized validator networks.
This feature will eliminate the exploits and attacks that have become commonplace with bridges.
Algorand’s founder Silvio Micali said,
Algorand proves once again that decentralization does not need to come at the cost of performance or security. Interoperability between blockchains is the future, and Algorand State Proofs are a critical security feature for communication between networks.
The upgrade has also enhanced the Algorand ecosystem by bringing new tools to make the network better entirely and is now better suited for decentralised applications in different sectors.
In any case, Algorand has been named as an already established high-performance Layer-1 blockchain and has a verifiable carbon negative status which has helped Algorand.
Better Security Guarantees After The Upgrade
Transaction per second is typically the measure of speed and is not correlated to finality and that is when a transaction is considered to be processed and finalised on the blockchain.
In relation to the finality, in terms of security guarantee, the transaction shall not be reversed and must be considered while assessing the TPS in blockchains.
Paul Reigle, Chief Product Officer, said about the upgrade that state proofs shall be an important and innovative part when it comes to securing blockchain interoperability.
Founder, Silbio Micali was also of the same belief saying that the States Proofs are important.
Despite saying so, decentralisation does not have to be unsafe nor should it lack proper performance.
It is a “critical security feature for communication between networks.”
Algorand was priced at $0.303 on the one-day chart | Source: ALGOUSD on TradingView
Featured image from Business Insider India, chart from TradingView.com