Algorand’s Pure Proof of Stake consensus protocol improves on the Proof of Stake mechanism by solving the Blockchain Trilemma.  Pure Proof of Stake is built on Byzantine consensus and facilitates an egalitarian approach than Proof of Stake (PoS).

Distributed consensus is considered to be a very important attribute of a blockchain as it ensures the DLT to be truly decentralized and immutable. 

The node is the very important element in a public blockchain network.  The node can be a computer server storing the chain’s software and the history of records which gets updated continually. These nodes are equal and therefore update the ledger simultaneously to reflect the newly added transactions.

When it comes to deciding what transaction can be added to the next block in the absence of a leading node, there is a need for predetermined rules which will organize the nodes which will participate in block creation.  A consensus protocol does this exactly.

The network is kept decentralized thus providing all participants with an equal opportunity to generate new blocks.

Blockchain Trilemma refers to the three key elements of the blockchain like security, decentralization, and scalability. POS reportedly can achieve only 2 of the objectives and not all the 3.

Algorand proposes an alternative that can satisfy all three requirements. We call it Pure Proof of Stake (PPoS), and it might be one of the most significant breakthrough inventions in the blockchain industry.

The PPoS Protocol prevents the rich from getting richer.  The PPoS protocol is also built on Byzantine consensus, and each token holder’s influence depends on its stake in the system. The trick is that the protocol selects users randomly, irrespective of their stake.

All the online users will have the opportunity to get picked by the system.  This boosts the decentralized quality of the blockchain and ensures security in the system.

The concept of random selection has been created and implemented by Micali, the Algorand founder. He is a leading cryptographer.  He has received the Turing award in 2012 for his contribution to cryptography.

For clarity, The Turing award represents the highest distinction in computer science and is sometimes referred to as the “Nobel Prize of Computing.”

Algorand is the first of its kind Pure Proof of Stake blockchain. Anyone will be able to build decentralized applications (DApps) and issue NFTs knowing that they deal with reliable technology.

Blocks are finalized within seconds and the blockchain can handle high transaction throughout without fear of congestion. Thus, able to compete with global payment and financial networks in terms of transaction speed.