Algorand Plans A New Upgrade To Improve Scalability: Details
- Layer 1 protocol Algorand has recently announced a new upgrade to its protocol, introducing State Proofs that aim to boost its transactions per second (TPS) from 1,200 to 6,000 and enable trustless cross-chain communication.
- The new upgrade will also bring new tools to streamline development for dApps.
Renowned proof-of-stake Layer 1 protocol Algorand has recently announced a new upgrade to its protocol, introducing State Proofs that aim to boost its transactions per second (TPS) from 1,200 to 6,000 and enable trustless cross-chain communication. The new upgrade will also bring new tools to streamline development and on-chain randomness features for dApps.
According to the latest press release by the company, these features align with Algorand’s goal to solidify its position as the leading Layer-1 blockchain for Web3 applications, including sports, music, Central Bank Digital Currency (CBDC), and Decentralized Finance (DeFi).
Notably, the newly-launched State Proofs are “an interoperability standard that securely connects blockchains to the outer world without trust in an intermediary” and boost TPS. They provide a “simple, quantum secure, and trustless interface” any PoS-based blockchain can use for cross-chain communication and transactions without compromising on cost, reliability, or security.
Director of Product Management at Algorand, Rotem Hemo, published a Medium blog about the new launch wherein he revealed:
“With the introduction of State Proofs that enable trustless interoperability, 6000 TPS, sub 4 second average block latency, and AVM 7 with on-chain randomness within smart contracts, this release expands Algorand’s capabilities even further and keeps the network at the technological forefront.”
Performance-wise, the protocol upgrade raises Algorand’s TPS from 1,200 to 6,000, enabling businesses to scale up to meet the rising demand for Web3 applications. On the other hand, Visa, which normally enables 1,500–2,000 transactions per second, Bitcoin with around 5 TPS, or Ethereum, which rarely exceeds 10 TPS, are now much behind Algorand.
“With today’s release, Algorand proves once again that decentralization does not need to come at the cost of performance or security. Interoperability between blockchains is the future, and Algorand State Proofs is a critical security feature for communication between networks. We are extremely proud of this innovation and believe it will push the entire blockchain landscape forward,”The protocol’s founder Silvio Micali commented on the new upgrade.
In light of the numerous hacks that have taken place over the past year, there is an increased emphasis on ensuring the security of cross-chain transactions and messaging.
Although an increase in TPS might be regarded as a beneficial upgrade or, according to Algorand’s CPO Paul Reigle, “game-changing,” more information is required to determine the effects that this modification will have on users and protocols.