Silvio Micali shares "Efficient Smart Contracts at Scale: Algorand’s Stateful TEAL Contracts" and what this means for comprehensive smart contract capabilities that enable the creation of DeFi solutions and dApps that can scale to billions of users, tens of millions of daily transactions, with negligible transaction fees.

Blog

Aug 19, 2020

Algorand’s Smart Contracts Powering Advanced, Fast, Scalable Applications

By: Algorand

Smart Contracts for Frictionless Exchange of Value

Today, most financial transactions are based on traditional contractual agreements composed of paperwork, that often need trusted third parties to validate the fulfillment of terms outlined in the agreement. This method is outdated, slow, and, most importantly, not cost-effective.

In blockchain, developers are using smart contracts to automatically execute transactions when conditions are met using basic lines of code stored on the blockchain.

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 - until they do, blockchain will remain a fringe use case.

Algorand's Layer-1 Smart Contracts (ASC1s)

Algorand’s smart contracts (ASC1s) remove these barriers as a trusted, seamless solution that is not only high performing by being faster, scalable, and cost-effective, but also functionally advanced to enable sophisticated application.

Algorand’s smart contracts are built directly into the layer-1 of a next-generation, open-source, permissionless blockchain that is decentralized and secure, providing significant benefits that include:

  • Ability to build seamless complex applications that solve real-world use-cases across different industry segments
  • Scalable, Fast, and Secure execution not currently possible in legacy platforms. ASC1s operate at over 1,000TPS and are final in under 5 seconds on a platform that is verified not to fork
  • Low cost to execute–ASC1 transactions have the same fee as any other transaction on the Algorand blockchain at .001 Algos
  • Reduced risk with instant settlement through trustless execution
  • Increased speed to market with comprehensive development resources such as simplified templates for Stateless Smart Contracts and examples of different complex custom dApp for Stateful Smart Contracts
  • Flexibility as ASC1s can be applied to specific transactions, all transactions from an account, or full power rich dApps

For technical resources and documentation to get started with ASC1s, visit our developer portal and subscribe to our developer newsletter.

Powering Next-Gen Financial Applications

An essential tool for all blockchain developers, smart contracts have accelerated the adoption of blockchain technology and are contributing to the increasing momentum.

The benefits and use-cases of blockchain applications are too many, too big, and too important to be stalled by the shortcomings of the first generation blockchains. Algorand enables developers to overcome legacy blockchain limitations and take advantage of the network, without sacrificing the speed, cost-effectiveness, and simplicity that their applications require.

Additional Resources:

NEXT GENERATION SMART CONTRACTS FOR THE DEFI WORLD

FINANCIAL APPLICATIONS WITH ALGORAND'S SMART CONTRACTS

EFFICIENT SMART CONTRACTS AT SCALE: ALGORAND's STATEFUL TEAL CONTRACTS, by Silvio Micali

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