How Algorand is solving blockchain trilemma?
By Inkarias - 2019-11-09
Algorand’s proof-of-stake protocol is the first of its kind to support the scale, open participation, and transaction finality for billions of users. Algorand’s VP of Engineering and Research, Naveed Ihsanullah shared his vision about how the company is solving the blockchain trilemma and how proof of stake is a major component of that success during an interview with New Trust Economy.
Naveed shared that:
Proof of stake is trying to solve one problem and winner takes all, if you have stake in the system, if you have some value tied up in the system in some fashion, then you have the ability to represent yourself when it comes to selecting those blocks. There are some nuances around proof of stake. The challenge of proof of stake is some versions of it are easy to implement. The most common one that we hear about is delegated proof of stake. That is how the United States Congress works. You select some representatives on your behalf and because there are 500-plus of them but not 350 odd million, they’re able to hopefully come to the decisions in a timelier fashion and make progress. That’s delegated proof of stake.
Multiple use cases for general adoption
Algorand consensus system is fair and benefits to everyone within the ecosystem. Algorand seeks to be a means of payment, not just a store of value like Bitcoin is currently. The team aims to be able to handle transactions meaningfully at a very large scale to bring more uses cases for general adoption. The project has now around $60 million of commercial real estate tokenized tradable on top of the blockhain. This system allows to safely store holdings while being able to trade real estate assets in real time and easily.
If you are looking to learn more about Algorand , you can visit https://www.algorand.com/