Introduction
Earlier today, the Digital Communities Champion from Algorand Foundation sent out an intriguing tweet that contained a link to an e-book. Titled “Can a Public Blockchain Keep a Secret?”, this e-book was the collaborative work of esteemed researchers from institutions such as Algorand Foundation, the University of Waterloo, Columbia University, the University of Pennsylvania, Algorand Inc., and Boston University.
Tweet Link
The tweet can be viewed here.
Screenshot of Academic Publications
Common Denominator of Algorand Related Publications
Upon scrutinizing these articles, HMD2V identified that they all share a common theme. This particular subject of interest is the consensus mechanism of the Algorand blockchain, which is fondly referred to as the “Pure Proof of Stake.”
How the Pure Proof of Stake Works
- During each round, all nodes share their block proposals together with the outcomes of a “Verified Random Function” (VRF).
- The VRF, in this scenario, operates similarly to a lottery ticket. Their purpose is to introduce randomness into the selection process and ensure that every node has a fair chance.
- Each of these nodes broadcasts its block proposal and corresponding VRF output to the rest of the network.
- The network then progresses to achieve consensus on the “winning” ticket, which corresponds to the lowest VRF output among all the nodes.
- The odds of creating the winning VRF output increase as the quantity of stake a node has, escalates. This principle applies not only to block proposals, but also to both committee rounds.
Advantages of Algorand’s Pure Proof of Stake
- The unpredictability and randomness of the network in selecting winners ensure significant security.
- It is exceedingly difficult for adversaries to manipulate the results.
- Once consensus is reached, there’s no incentive for attackers to target the winner because the blockchain continues to progress forwards.
Conclusion
The research approach developed and implemented by the Algorand Foundation researchers allows secrets to be shared and re-shared within small dynamic committees. Participants remain anonymous until they decide to erase their secrets, and the system can withstand up to a quarter of the members being corrupted.
It’s worth noting that Algorand’s proof of stake consensus mechanism received acknowledgement from another influential figure in the cryptocurrency industry- Charles Hoskinson. He is a founder of Cardano, a competing blockchain platform. Hoskinson had suggested that the Algorand blockchain should be a sidechain of Cardano, which was brought up after the CTO of Algorand publicly discussed the network’s future direction on Twitter.