Algorand AMA Recap

Algorand AMA Recap

CryptoDiffer team

Hello everyone!

We are glad to meet here 

Steve Kokinos – @stevekokinos  (CEO at Algorand) 

Keli Callaghan – @kelicallaghan (VP of Marketing at Algorand

Can you introduce yourself to the community? What is your background and how did you come to the idea to create your project?

Steve Kokinos
CTO

I’m a serial entrepreneur and Algorand is the fourth company I’ve been lucky enough to be part of. Prior to Algorand, I was the co-founder of a company called Fuze, which is a video and collaboration platform – about 700 people today. I started to get interested in crypto and blockchain, and really felt that the dynamics were the most similar to anything I’ve seen since the early days of the internet. I was fortunate enough through a mutual friend/investor to be introduced to Silvio. The work that he and the others were doing was fascinating and I feel fortunate to be in a position to help drive the project forward.

CryptoDiffer team

Can you briefly describe what is Algorand in 3-5 sentences?

 

Steve Kokinos
CTO

Algorand is an open source technology company that is focused on bringing blockchain adoption mainstream. Our foundational, public and permissionless pure proof-of-stake protocol is the first of its kind and launched just a couple months ago in June.  Our consensus mechanism ensures full participation, protection, and speed within a truly decentralized network. With blocks finalized in seconds, Algorand’s transaction throughput is on par with large payment and financial networks.

The network has provided performance of 1000+ transactions per second and less than 5 second latency since launch.

Algorand is also the first blockchain to provide immediate transaction finality. No forking.

 

CryptoDiffer team

What are the major milestones you achieved since the Token Sale?

Steve Kokinos
CTO

It has been a busy two months in the Algorand ecosystem since MainNet was turned on and the first Algos entered circulation.  We have seen a substantial number of companies building next generation products and services on Algorand. This includes innovation from companies across tech, real estate, finance, non profit, and more.

Most of this is due in part to the highly impactful tools that the developer team here at Algorand have released, along with tools from the community such as Purestake’s API that allows developers to plug in and start building asap.

The innovation at Algorand has continued with Silvio and his team talking about the next wave of innovation they are working on for the community, as well as 

https://www.algorand.com/resources/blog/fungible-tokens-and-atomic-multi-party-transfers 

https://medium.com/algorand/algorands-forthcoming-technology-bcd17989c874

 

CryptoDiffer team

Can you give an Algorand ELI5?

Steve Kokinos
CTO

The core innovation behind Algorand is that in other systems miners, or a selected group of block proposers run the network. In Algorand, the USERS are the ones who run and secure the network. This is because in Algorand, in every round, each user runs a lottery in secret on their own computer, and of those users one block proposer is chosen at random and a committee of approvers are chosen at random. Those selected change with every block, and nobody knows who was selected until the block is confirmed. So it’s very fast (the lottery only takes a fraction of a second) and secure, because you don’t know who to attack until the block is already confirmed.

 

CryptoDiffer team

Who is building on Algorand and what are they doing?

Steve Kokinos
CTO

First, we are firm believers that in order for the crypto community to grow we need to tap into the 20M developers around the world who are not currently building blockchain/crypto DApps. There are only around  100,000 developers building on blockchain today, though it’s growing quickly.

Our goal is to make it easy for developers to build on Algorand and give them a clear vision for how their users are engaging with their solution to solve real-world problems. Our partner, Flipside Crypto, is providing a free DApp analytics toolset on our blockchain to give Algorand-based developers a superior level of user insight, helping them build the best DApps possible. Info on this here: https://www.algorand.com/resources/blog/flipsidecrypto

Examples of some projects that are building layer 2 applications on the Algorand platform now that MainNet has launched are Otoy Inc., AssetBlock, Purestake, Syncsort, and Top Network. More details can be found in this blog: https://medium.com/algorand/the-borderless-economy-is-here-4906c516f004

 

Cryptodiffer Community

Why does the longest chain rule not scale and what is the problem with model POS blockchain? 

How does $algo solve that ?

 

Steve Kokinos
CTO

There are two issues here. First, the longest chain rule means that transactions are not final, which is why for many chains it’s suggested that you should wait for a period of time after a transaction appears in a block before considering it safe. 

Separately, there is another issue which is as blockchains grow catching-up and maintaining the entire blockchain isn’t reasonable for the average user. In Algorand, we believe performance should be consistent forever and users should only need to maintain the transactions they care about, not the entire chain. 

Vault was a peer reviewed paper on our light client protocol, which enables random access to the blockchain and the ability for users to only store the information relevant to them, with a proof that it is correct that is derived from the blockchain.

 

Cryptodiffer Community

Can you say how you are going to solve problem wuth concentration of power? because its common when total computing power for block generation depends on just several mining pools. Thanks!

Steve Kokinos
CTO

In Algorand every user can be called on to participate in the consensus protocol at any time. As such, it is the users who are securing the network, not a small concentration of miners. As the user base grows the network becomes more secure and decentralized by it’s very nature. Algorand is decentralized by design.

Cryptodiffer Community

What is the roadmap for the next six and twelve months? What use cases or challenges are you trying to solve? What is the future direction of this project?

Steve Kokinos
CTO

This is a great question. Silvio just released a blog post detailing proposals for near term features, namely the ability to create fungible tokens in layer 1, the second being atomic multi-party transfers. Any token created on top of Algorand enjoys all of the benefits of the protocol itself, without a need for smart contracts and/or resulting complexity or security concerns.

Here’s a link to the blog:

https://www.algorand.com/resources/blog/fungible-tokens-and-atomic-multi-party-transfers

In addition, Silvio also shared some thoughts on upcoming technology that ties into this here:

https://www.algorand.com/resources/blog/algorand-forthcoming-tech

 

Cryptodiffer Community

 

How Algorand’s reward system works? As a developer why should i choose Algorand to build?

Steve Kokinos
CTO

The reward system is driven by participation in the protocol. Currently users can receive rewards by either being online, or by being offline and delegating to the protocol. For an initial period this helps introduce users to the protocol and learn about the technology. There will be additional updates on incentives and rewards in the protocol in the near future, so stay tuned on that!

From a developer standpoint we are focused on simplicity and in helping make it easy, scalable, and secure to engage both in our community and build applications on top of the platform. We’ve found that many platforms are focused on general purpose smart contracts that can often be difficult to create and require formal verification. In Algorand critical functions and templates will be executed in Layer 1. You can find more info here:

https://www.algorand.com/why-build-on-algorand/

 

Cryptodiffer Community

Most of the ICO/IEOs project doesnt have any use case adoption eventhough after mainnet, everyone know your company are doing great in technology but are there any real use case you can share with us and how many users are currently in the platform adoption?

Steve Kokinos
CTO

We’re seeing the ALGO used for many different use cases including commercial real estate (Assetblock), infrastructure services (Purestake, Staked, Blockdaemon, Bison Trails), Analytics (Flipside Crypto) to name a few. We’re excited to see new applications coming online every day

Cryptodiffer Community

What is “Pure proof of stake”?

Why PPos is more secure, scalable and faster than Pos?

What is the main purpose of using the new byzantine agreement technology to generate a new block and communicate with different model or block?

Steve Kokinos
CTO

Pure proof of stake is public, permissionless, and decentralized. Other forms of proof of stake are centralized in some way. 

Algorand specifically represents a new form of byzantine agreement that is scalable, secure, and decentralized all at the same time. As I mentioned earlier this is because in Algorand every user supports the network, and runs a cryptographic lottery in secret for each new block. This requires very little computation, and the speed at which transactions happen is limited only by the throughput of the network itself.

Cryptodiffer Community

What are the difference between Layer 1 and Layer 2 Scalability and which one algorand project uses and why ?

What is the business model of Algorand ? How Algorand project generates revenue for project development ?

Steve Kokinos
CTO

Algorand was designed from first principles to solve Layer 1 scalability first. To use an internet analagy, nobody would be using netflix today if we were still using dial-up modems to connect to the internet. The fundamental technology needs to be able to transact at scale, securely, and with finality. Algorand solves that fundamental problem and in turn helps pave the way for more diverse economic exchange, asset types, and transactions to join the blockchain/crypto community.

 

Cryptodiffer Community

 

What critical problems do you see occurring in the blockchain industry nowadays and how does your project aims to solve these problems?

Steve Kokinos
CTO

One of the biggest issues in blockchain today is the need to encourage new people to buld and new users to enter the market. Today there are around 100,000-200,000 developers building blockchain applications which is a small percentage of the 20M that build more broadly. In addition there are at most 100M end users, which needs to scale to billions. Bringing new applications, financial tools, and the fundamental tech enabling large scale businesses to deploy is critical. 

In addition to that, the mainstream developer and end user market favor simplicity in those experiences. Getting developer and end user experiences right and keeping the complexity of underlying distributed tech behind the scenes will be critical as well. 

Our focus is on helping drive that in the right direction and think that will help grow the community as a whole.

Cryptodiffer Community

What is the difference between Algorand Foundation, Algorand Inc and Algo VC Fund? How does each of them make profit? Are they allowed to participate in staking program?

Steve Kokinos
CTO

Algorand Inc is an open source software company that contributes to the Algorand protocol, but is also working on community standards around cryptography and other forward looking research and innovation, as well as providing support around the technology.

The Algorand Foundation is based in Singapore and is responsible for governance of the public blockchain and initial issuance of the Algo. 

Algo Capital is a VC fund focused on equity investments in projects that enhance the Algorand ecosystem. 

All three organizations are separate, with their own teams and management structures but are philosophically aligned in terms of supporting the Algorand community.

Thanks everyone for your time! I did my best to answer as many questions as possible, I’ll try to type faster next time!

Cryptodiffer Community

Annoying problem with most of fresh blockchains is ambiguity in the consensus, reached by different network nodes on the confirmed transactions. And that could even lead to the fork of blockchain. Algorand is different and solving this, or not?

Steve Kokinos
CTO

Algorand does not fork! Here’s a link to a recent article explaining more:

https://www.algorand.com/resources/blog/runtime-verification

 

Steve Kokinos
CTO

Thanks everyone for your time! I did my best to answer as many questions as possible, I’ll try to type faster next time!

 

Cryptodiffer TEAM

Thank you for your time and for opportunity to host an AMA with Algorand!

It was pleasure to meet you. 

Community is great as always!

If you have other questions related to the project, you can ask in @Algorand chat!

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Maks Kyryliuk
query2212@gmail.com

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