Security Of Algorand In Various Industries As Compared With Other Blockchains

INTRODUCTION

It is easy for someone to assume that Algorand is probably just another version of block-chain for certain use cases or sectors. This is not so! Rather, Algorand is an improvement upon the traditional block-chains and previous block-chains, and also very uniquely different from other block-chains that has ever been developed. In many ways such as in terms of security, architecture, applications or use scenerios, Algorand's block-chain (protocol) is the best. Algorand comes with immense benefits because of its unique problems-solving features and goals-oriented team of developers and managers. Block-chain is revolutionizing the globe (both the digital and physical aspects) in many ways and it's known to have disrupted many spaces and markets. Algorand is a new and improved block-chain based on latest innovation and cutting-edge architecture. Algorand, therefore is going to have outstanding impacts as compared to other block-chains. In this article, we shall take a brief but robust look at the security of Algorand in comparison with that of other block-chains. Algorand is ensuring that it improves on features and power of other block-chains.

WHAT IS ALGORAND, IN SIMPLE TERMS?

Algorand is a trustless, pure Proof of Stake block-chain that improves on the traditional block-chain by addressing the challenges or flaws of these block-chains such as the block-chain's trilemma through the provision of sustainable solutions, that will ensure increased acceptability and wide-range adoption of block-chain technology in many more sectors of the globe.

UNDERSTANDING ALGORAND'S SECURITY AND THAT OF OTHER BLOCK-CHAINS

In order to understand the security architecture of Algorand in relations to that of other block-chains, we shall consider the following headings:

A. The security challenge of traditional block-chains

B. Algorand's solution to the problem

C. Security approaches of previous block-chains

D. Algorand Pure Proof of Stake (PoS), Secure block-chain

A. THE SECURITY CHALLENGE OF TRADITIONAL BLOCK-CHAINS

Despite the fact that block-chain has changed many aspects of the global industry, it isn't without flaws. Despite its many groundbreaking features and benefits, it still has the issue of block-chain trilemma. Block-chain trilemma represents the fact. That block-chain does not offer all 3 features of security, de-centralization and scalability maximally and simultaneously, unless one is given up for the others. In this situation, security can really be an issue and that could be very detrimental. 

B. ALGORAND'S SOLUTION

Algorand is a proven remedy to this issue as a result of its improvement upon the normal block-chain, its Layer-1 innovations and Smart-contracts architecture. Algorand gets rid of technical hindrances that has limited the massive adoption of block-chain for many years. Algorand is a unique block-chain that delivers all these 3 inter-woven features altogether and at maximum level for each.

C. VARIOUS SECURITY APPROACHES/MECHANISMS OF PREVIOUS BLOCK-CHAINS

Let's look at some of the approaches used in dealing with security issues in previous block-chains that has led to their many flaws. These approaches or mechanisms include:

• Proof-of-Work (PoW)

• Delegated Proof-of-Stake (PoS)

• Bonded Proof-of-Stake (PoS)

These approaches cause the whole (block-chain) economy to depend on or even be at the mercies of a smaller portion of the economy. This is because a few actors or delegates in the system are given control over the resources or assets in the economy. This is a rather dangerous flaw in terms of security and de-centralization, it is really threatening. What happens if the individual members that make up the small portion that controls the assets of the economy (involved in mining, voting and blocks confirmation) misbehave? Of course, the whole economy resources becomes de-valued.

FLAWS OF PREVIOUS SECURITY APPROACHES PROOF-OF-WORK (POW) ALGORITHM

• It doesn't scale

• It is slow in processing and expensive to operate, as in Bitcoin mining

• PoW approach leads to de-facto centralization

• It is not secure. It is susceptible to network hacks/attacks

• Inevitable presence of forks

• A small portion of the digital economy, e.g miners control the resources of everyone.

DELEGATED PROOF-OF-STAKE

In this approach, a few users are made delegates for a while to decide every next block. This means that it still depends solely on a small portion of the economy, hence, somehow centralized. However, the danger here is that delegates may not remain honest for a long time.

This approach is:

• Somehow centralized

• Susceptible to attacks, namely, Denial-of-Service (DoS) attacks.

• Not secure, since it relies on delegates' mutable trust.

BONDED PROOF-OF-STAKE

In this approach, some users are allowed to drop some funds 'on the table' which is a bond. They will no longer be able to touch these funds. These bond initiators select every next block by their own decision and this privilege is exclusive to them.

• This method is also faced with centralization issue

• It is not secure; since it relies on small portion of the economy

In short, none of the above approaches used in previous block-chains is secure because a smaller portion of the system of users are made delegates that control the economy and can hinder others from making transactions should they misbehave.

D. ALGORAND SECURITY APPROACH: PURE, PROOF-of-STAKE, SECURE BLOCK-CHAIN

Algorand deals with the issue of Security and De-centralization by using the pure PoS Consensus Algorithm. In this latest approach, Algorand allows the majority of the economy to decide the economy such that it is impossible for the minority to hinder the expected operation of it. In this system ;

• It is impossible for owners of the smaller part of the economy's assets (money) to de-value the whole economy

• The majority owners wouldn't try to misbehave and devalue their enormous holdings and investments, because that would be silly of them. 

• The chain does not fork, unlike in other block-chains.

Users who form the majority propose and vote blocks. These majority of users are selected randomly, secretly and unanimously. Anyone could be selected and included in the committee of the majority of the economy.

This Pure Proof-of-Stake makes Algorand more secure than previous versions of block-chain. This approach, coupled with other features such as Smart-contracts at Layer-1, Co-chain Architecture helps Algorand protocol to be highly fast, very scalable, secure and truly de-centralized.

CONCLUSION

Algorand is not just another block-chain version or product, it is rather a cutting-edge innovation that greatly improved on the previous block-chains. Previous block-chains, as we know, are being faced with few challenges including security issues. Algorand aims to solve these issues of which security is part. Previous block-chains used various security approaches such as PoW, Bonded PoS, and Delegated PoS. Nonetheless, they all had significant security flaws. In order to ensure better security of assets and users on the economy, Algorand utilizes the Pure Proof-of-Stake Consensus Algorithm. Algorand permissionless and pure PoS algorithm ensures full protection, full participation and enhanced speed in a truly de-centralized network environment. This approach, coupled with other features such as Smart-contracts at Layer-1, Co-chain Architecture helps Algorand protocol to be highly fast, very scalable, secure and truly de-centralized. For more information about Algorand, Visit their WEBSITE

Article Written By,
Anderson, Algorand Ambassador