Algorand Smart Contract Crypto Review

In my opinion Algorand is one of the most underrated coins on the market. I truly believe that if people understood just what Algorand has achieved and what it has in the pipeline then this coin would be worth far more than it currently is.

Let’s not spend too much time on my opinion…

What Is Algorand?

Algorand is the worlds first open, permissionless, pure proof-of-stake blockchain protocol that doesn’t include forking.

It is secure, scalable and decentralised supplying all the necessities for today’s economy. Algorand has one of the best teams in the business and has the awards to prove it.

The main base is the Algorand Protocol.

What Is The Algorand Protocol?

The Algorand protocol is made up of three unique features in what is called layer 1. They are Smart Contracts, ASA, and Atomic Transfers. These unique features create the core of Algorand.

Each of these features has a unique identity…

ASC1 in Layer 1 - Smart Contracts

Today, most transactions are based on traditional contractual agreements composed of paperwork, that often need third parties to validate the fulfilment of terms outlined in the agreement. This method is outdated, slow, and, most importantly, not cost-effective. This is why developers using blockchain, are using smart contracts to automatically execute transactions using basic lines of code stored on the blockchain when agreement conditions are met. However, developers using smart contracts built on first-generation blockchains are facing challenges that are preventing their applications from gaining mainstream adoption. These smart contracts are slow to propagate, costly, and do not scale for real-world use-cases. These impediments have to be removed for viable mainstream adoption.

Algorand’s smart contracts (ASC1) remove these barriers as a trusted, seamless solution with proven performance that is not only faster, scalable and cost-effective but also functionally advanced to enable the sophisticated and complex application. Algorand’s Smart Contracts (ASC1s) are trustless programs that execute on-chain, where users can be confident that the program was run without error and the results were not tampered with. They are integrated into Algorand’s Layer-1, inheriting the same powerful speed, scale, finality, and security as the Algorand platform itself, and are cost-effective and error-free. ASC1s have the ability to automatically enforce custom rules and logic, from simply defining how assets can be transferred to complex application logic and flow. ASC1s are written in a new language called Transaction Execution Approval Language (TEAL) as well as PyTeal, a python language binding.

ASA in Layer 1 - Algorand Standard Assets

Algorand Standard Assets (ASA) provide a standardized, Layer-1 mechanism to represent any type of asset on the Algorand blockchain. These can include fungible, non-fungible, restricted fungible and restricted non-fungible assets. In today’s economy, there remain many issues when it comes to the digitization of assets. These challenges include:

  • Access to global, digital markets
  • 24×7 transferability
  • Instantaneous settlement
  • Ease and enforceability of asset controls
  • The efficiency of administration, such as compliance and reporting

ASA’s Enable:

Role-Based Asset Control (RBAC): Optional and flexible asset controls for issuers and managers for business, compliance, and regulatory requirements. This includes:

  • Quarantine asset accounts for investigative purposes
  • Force transfer an asset where legal or other regulations require it
  • Whitelist model for privileged asset transacting, which allows only specific addresses that have been approved to transact within a specific asset (all others will be restricted)
  • Flexible asset reserve models for custom business requirements
  • Off-chain asset documentation included in on-chain asset definition

User Protections: Asset spam protection that prevents unknown assets that may have tax, legal, or reputational risk from being sent to users without their explicit approval (users must opt-in to accept new assets).

UNIQUE FUNCTIONALITY

  • ASAs are incredibly fast and secure, as they are built directly into Algorand’s Layer-1
  • ASAs are low cost to execute, due to Algorand’s minuscule transaction fees
  • Easy and simple asset issuance for developers and enterprises
  • Universal interoperability of all assets issued on Algorand

MOST EXCITING USE CASES

  • Asset tokenization
  • 3rd party asset issuance on Algorand
  • Democratize access to investments
  • Disintermediate cross border transactions

To be continued…

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