In today’s fast-evolving digital age, Blockchain are progressively shaping the future of the digital world. Thanks to the identified loopholes in centralized economies, blockchains have garnered an impressive amount of not just relevance but value as well, easily making it one of the most ground-breaking developments to spring up in the last 3 decades.
For newbies, the world of blockchain with all the tech lingo may seem confusing but it’s not that complicated. Think about a vast database containing an unalterable record of transactions distributed across a network of computers. These computers are referred to as nodes.
Blockchain is a system that serves as a channel for transactions that are then compiled into blocks after verification. Each of these blocks is then verified by a decentralized network of computers and affixed to the last set of blocks before receiving a special code known as a hash.
But if the Blockchain is so foolproof, why Algorand?
Blockchain secures data from public keys or smart contracts. However, this technology of immutable database has its downsides such as reduced scalability and manageability.
What’s more, the blockchain requires high super storage which automatically brings about a bump in decentralization. A blockchain was originally rigged to accommodate only validators with the capacity to mine blocks. Without this, no other player in the system can take part in unanimity.
Simply put, while the blockchain solves one problem, it requires permissions for a lot of its processing and can be quite slow. Think of all the people who utilize blockchain systems and imagine what a bummer it is for them, especially newbies who permissioned blockchains cannot adapt to.
What solutions does Algorand blockchain provide?
Zero permissions
Speed
Trust
Cost-effective processing
And how does Algorand blockchain do this?
Through its new, game-changing scheme: Point-Proofs.
Point-proofs is a non-interactive vector commitment scheme which backs or supports aggregation of proofs across multiple commitments.
Using Point-proofs, a user can commit to a sequence of values with just 48-bytes to worry about when it comes to the size of the proof and commitment.
What else does Point-proofs do?
They sometimes reveal the definite positions of one or more values after a user has committed to a sequence and allow a third party to cumulate a series of proofs.
Remember those 48-bytes? They are an elliptic curve represented procured by autonomous commitments separate, distinct users.
This is why the Algorand blockchain is such a big deal! With a scheme that allows for hiding properties and cumulating of cross-commitments, Algorand blockchain is easily the next big thing.
You can now generate commitment and proof for values that conceal information about other remaining values.
Let’s skip the technical jargon and do the math.
On one hand, you have stately blockchain models and on the other, Algorand blockchain; a stateless, permissionless blockchain model.
Conventionally, when committing to a set of data by the Bitcoin or Ethereum blochchain, we use Merkle Trees. Merkle Trees have a reputation of long proofs before a transaction is given the all-clear.
This means that to change any of the values for a commitment of 1000 values, nearly 320 bytes of additional data is required in that smart contract.
These additional data are known as cryptographic proof and without a doubt, these data incur costs and take chunks of network bandwidth.
Algorand blockchain solves transforms user experience by substituting on-chain storage with cryptographic commitments.
Here is how that works.
A user generates a commitment to his/her data in the blockchain. On Algorand blockchain, this user can attach or connect the values of their transaction by updating with associated cryptographic proofs. This is a superb alternative in comparison with traditional blockchain methods.
Pointproofs can be used for a variety of functions in the Algorand blockchain:
Proliferating blocks of transactions by at least half.
Generating proof for values per number commitment.
Verifying aggregate proof.
Swift computation of transactions.
Let’s take a look at how Pointproofs improve smart contract transactions. In blockchain systems, money is transferred from one account to the other using simple transactions. However, more complex transactions can be verified using a convoluted code referred to as smart contract which also depends on its memory for implementation.
A perfect illustration of this is the validity or invalidity of a transaction determined by values stored in a few memory locations when executing the rules of a securities exchange in the smart contract. Memory in a smart contract may be used to store holdings of multiple entities during the exchange. These memory locations are sometimes modified when a smart contract transaction is successful.
Now, when it comes to Pointproofs, smart contracts, and Algorand blockchain, validators are required to be aware of account balances and their current state.
Using Pointproofs for smart-contract-based transactions, the Algorand blockchain not only provides users with reduced bandwidth overheads, but it also allows validators only store commitments, to relevant vectors.
The efficiency of Pointproof cannot be overestimated. In 0.8 seconds, proof of 8 values can be generated for everyone’s commitment on a single thread. With Pointproof, it takes just 0.25 seconds to cumulate 4000 proofs across more than one commitments and compile into one proof. Lastly, in 23 seconds, Pointproof allows users to verify aggregate proof.
With Algorand blockchain’s Pointproof, the future of blockchain transactions is taking a whole new shape that promises users a more excellent experience with its efficient, decentralized networks.
Take a look at the white-paper and Algorand’s open-source implementation.
