Security is a priority for a public blockchain where all participants can store valuable assets and build various trusted enterprise apps. Algorand maintains security and supports maximum protection against hack attacks at the consensus protocol and network levels, protecting the security of individual users’ accounts.
The blockchain is designed to guarantee security in transactions. Algorand accomplishes this by providing a secure system against hacker attacks on the negotiated protocols and the network layer.
What is Algorand?
ALGO is currently ranked 28th among the largest cryptocurrencies in the list of cryptocurrencies with the largest market capitalization. Algorand is a popular decentralized finance cryptocurrency and a permissionless blockchain protocol for developers using a centralized system.
The blockchain platform was created not so long ago, namely in 2017, by MIT professor Silvio Micali. The Algorand protocol uses unique algorithms to provide secure, fast, and scalable transaction processing. Algorand opens up great prospects for users by solving the common problems of the old blockchain technology, including consensus and scalability.
This popular blockchain uses a consensus protocol to randomly select verified participants based on stake weights on special Algo coins using POSS. In addition, this protocol is based on a new consensus algorithm that provides scalable, fast, secure transactions. The blockchain uses the special Pure proof-of-stake consensus protocol.
How does it work?
PPS consensus algorithms using Byzantine agreement protocols distinguish Algorand from many other blockchain systems. In case of node compromise, the local ALGO token belonging to network users can be automatically protected using an identifier key.
Creating new blocks and verifying the authenticity of these blocks require large computational resources and energy capacities. POSS allows you to validate and create new blocks faster.
The influence of the user on the choice of a new block depends on the number of tokens stored in the system. Applicants will have the opportunity to determine the number of votes and the weight of their proposal. The choice of the user may occur secretly. So, the system remains secure.
The Algorand network dubbed the “blockchain trilemma,” solves the following problems that blockchain faces: scalability, security, and decentralization. Algorand Network is a telephone network focused on solving two of the three key tasks, scalability and decentralization.
- Scalability. The Algorand protocol can process many transactions per second, making it a more scalable solution than popular cryptocurrencies like Ethereum or Bitcoin. In addition, the consensus protocol eliminates the need for computing power used in bitcoin to solve various cryptographic problems.
- Security. The Algorand protocol is protected from different hack attacks, making it ideal for storing valuable assets and transactions and building secure enterprise applications. In addition, it supports network and consensus protocol security and effectively protects individual user accounts.
- Decentralization. Algorand is completely decentralized, with no single center of control or central authority. Participating nodes in the network verify transactions, and each node has an equal say in decision-making. There is no standing committee, and people run its nodes from all over the world. It makes it a decentralized system with great benefits.
Protecting Users’ Stake
The membership key expires after a number of rounds, after which it is deleted, and the user must generate a new membership key. The user’s participation and spending keys are separated, and the secret key can be stored offline in cold storage. Therefore, the user’s bet remains safe even if his membership keys are damaged.
The consensus protocol is designed to prevent hackers from attacking and controlling block generation as much as possible. Unlike other protocols, neither a fixed committee nor a few delegated users are responsible for block distribution. Furthermore, selecting users to participate in block certification is secret and random.
Thus, the hacker does not know who will generate the next block until the user chosen participates in the consensus protocol. Once the hacker has the necessary information, it will be too late to take action.
After all, the user has already sent a message and fulfilled his obligations in the consensus protocol. A different set of participants will be chosen again in the next phase and round.
Resistance to network attacks
The decentralized system is susceptible to network attacks in which a hacker targets communication channels between users, which makes it very difficult or even impossible for any user interaction. A hacker can divide the network into special isolated parts so that users can only communicate within one part and have no contact with members of other parts. During a network partition, the network is asynchronous, and the hacker has complete control over who receives certain messages and when.
If the split is long and the underlying blockchain does not consider this, the perpetrator could convince different user groups to accept blocks at the same height in the blockchain. As a result, other users will accept conflicting transactions, allowing the hacker to spend his money twice.
And during a network split in Algorand, a hacker can never convince two users to accept two blocks for the same round. User balances remain safe because the Algorand network never forks. All transactions are final. Algorand can recover after a partition is resolved and ensures that new blocks are generated at the same rate as before the partition. Algorand can recover data from partitions almost instantly.
Algorand holds great promise, offering users security, which is extremely important in a world of ever-increasing hacker attacks. Furthermore, Algorand is capable of being the best crypto with its unique approach to safety. As a result, investors in the crypto space are paying attention to this great cryptocurrency.
The Algorand protocol is protected from hacker attacks, which makes it an ideal solution for creating secure enterprise applications, making transactions, and holding different high-value assets. In addition, it maintains security and protects individual user accounts well.
This cryptocurrency and blockchain platform operates as a major payment processor. It is quite safe, which users highly appreciate.
Algorand is distinguished by its speed, security, and offering new features to users. It is a low-cost, fast, carbon-negative, decentralized blockchain with several advantages. Algorand can process thousands of transactions per second with instant completion.