Blockchain systems keep evolving as new discoveries spring up in the community of digital technology. The community is not only finding dynamic ways to make the transactions swift and secure but also modifying previous technologies for supreme results. If you’ve wondered what hybrid blockchain means for the blockchain system and how it relates to Algorand,
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Blockchain systems keep evolving as new discoveries spring up in the community of digital technology. The community is not only finding dynamic ways to make the transactions swift and secure but also modifying previous technologies for supreme results.
If you’ve wondered what hybrid blockchain means for the blockchain system and how it relates to Algorand, then this is the content you should be reading. For newbies, we will quickly breakdown core concepts of blockhain systems before we talk about the good stuff.
Blockchain simply means a digital ledger, systematically distributed, that records all transactions executed among various players in a network. Participants could be businesses or individuals and each are linked to the blockchain with an identical copy of the ledger. These participants are referred to as nodes.
Now, for us to grasp the idea behind hybrid blockchains, we must first understand what public and private blockchains are. Public blockchains, are permission-less by design. This means that it would allow virtually anyone to conduct transactions and join any consensus protocol being conducted, as long as this party is connected to the internet.
Public blockchains possesses zero restrictions, making it possible for interested users to download that software, bring in fresh blocks, verify information or run their own nodes on the blockchain.
If you have observed the volume of activity that takes place on public blockchains then you now know the reason. Its pemission-less design makes it a hotspot for tons of nodes which go on to form a distributed, large-scale network of node which verify other nodes and communicate. Each of these nodes in this network is independent.
Despites it’s unique benefits such as anonymity, immutability, openness and high security, public blockchain cannot guarantee users privacy. Also because it requires zero permission for anyone to participate, public blockchains commonly have very low efficiency in comparison to other blockchain types like private blockchain for example. Most corporate organizations and governments are known to opt for other types of blockchain due to the vulnerability of public blockchains to unethical activity, its high cost and instability.
On the other hand, private blockchains are the opposite of public blockchains. They are permissioned networks which require permissions for participants to conduct any action on the blockchain. Joining this type of blockchain is by invite-only and to keep it secure, information is often times encrypted. Efficiency and stability are primary features of private blockchains.
Unlike public blockchains which are saturated with nodes, private blockchains are cost-effective since they do not demand much to maintain. They also do not have the anonymity and immutability of public blockchains. Private blockchains are managed by either a small body of entities or a singular entity.
Now what is hybrid blockchain and what is the connection to Algorand?
Hybrid blockchain is a unique network in blockchain that integrates both public and private features to bring about a transaction space that is flawless. In other words, this blockchain is centralized and decentralized at the same time. Users are presented with security, transparency, reduced cost of transaction and privacy, all in one blockchain. Members of a hybrid blockchain choose which transactions are made public and who gets to join in. This means that though transactions are private, they are open for public access.
Why is the hybrid blockchain so remarkable?
Hybrid blockchain takes all the best features of public blockchains, all the best features of private blockchains, and incorporates them together to form one of the most incredible blockchain systems to ever be developed. The structure of hybrid blockchain goes a long way to help businesses and governments maintain control and flexibility over their data. While big organizations want to enjoy the benefits of a blockchain, none of them are willing to manage the risks that come with conducting transactions. Hence, the value of the hybrid blockchain to these organizations. An example of a hybrid blockchain is Algorand.
Algorand blockchain is the first blockchain platform in the world to develop a trustless and flawless Proof-of-Stake blockchain protocol which offers users a decentralized platform to conduct scalable, safe transactions. This sort of decentralized platform is highly needed in the world’s current economy as it grows.
What does Algorand technology do really?
The answer is simple. The Algorand technology eliminates technical barriers, that prevents transactions on its blockchains from being decentralized, scalable and secure. Its design makes its consensus mechanism trust-less and to guarantee efficiency, complete participation and protection its Pure Proof-of-Stake protocol is fully utilized.
Coordinated by winner of the Turing award, Silvio Micali together with his team of highly skilled mathematicians, engineers and cryptographers, what users have with the Algorand blockchain is a platform that is committed to churning out the best solutions for the future of economic exchange. Today, the most recent version of Algorand consists of multiple functionalities to accommodate the demands of many businesses.
Its most unique functionality is the layer-1 fundamental which enables atomic transfers, tokenization of asset, smart contract creation. This brilliant feature has facilitated the cooperation of decentralized exchanges and stablecoin who are currently making the most of Algorand’s remarkable blockchain system which helps them to manage resource-extensive applications and resources.
It would interest you to know that though Algorand blockchain is categorized as hybrid blockchain, it is also a very public blockchain courtesy of its permission-less nature. With Algorand blockchain, users have true decentralization. Unlike the average hybrid blockchain, Algorand blockchain has no one contact point or influential central authority. Publicly available for anyone with internet access to audit with an open-sourced node repository, it is one of the best examples of a hybrid blockchain. This explicit characteristic of Algorand blockchain ensures exactitude, transparency and objectivity.
Now while Algorand blockchain has the same features of a hybrid blockchain, it is not like your regular hybrid blockchain. The inclusiveness and collaboration of Algorand blockchain is sustained by a supportive, dedicated community wholly driven by the vision of a scalable, borderless economy on a global scale. This means that Algorand blockchain is more of complimentary to the overall features of conventional hybrid blockchains.