News

Aug 19, 2020

Algorand Upgrade Paves the Way For Sophisticated Applications across Defi and Traditional Sectors

By: Algorand Foundation and Algorand, Inc.

Fundamental shift in smart contracts unlocks potential of blockchain with powerful protocol purpose-built for frictionless exchange

Singapore (AUGUST 19, 2020) — Algorand Foundation and Algorand Inc today announced the launch of comprehensive smart contract capabilities that will 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, all while taking advantage of the layer-1 benefits of the Algorand protocol. Unlike first-generation blockchains, Algorand’s platform was designed from the ground up to power complex applications that require speed, scale, finality, and security, while being cost-effective and precise. 

The key element of today’s launch is the addition of stateful smart contract functionality integrated into layer-1, joining existing capabilities such as Atomic Transfers, stateless smart contracts and Algorand Standard Assets (ASA1s). Until now, restrictions around scale, transaction speeds and high transaction fees have been barriers to mainstream blockchain adoption. Algorand’s latest upgrade removes these barriers and enables DeFi and dApp developers to build more sophisticated solutions, scale their applications, and make the promise of a borderless economy a reality. 

"DeFi gives the world access to an essentially unlimited number of financial products and services. It's important for the new generation of dApps not to be stalled by the shortcomings of the first-generation blockchains,” said Silvio Micali, founder of Algorand. "Algorand’s protocol serves as a solid foundation to power truly frictionless applications, and our approach to smart contracts makes them high-performing and functionally advanced enough to rival today’s existing financial services."

The latest advances in Algorand’s smart contracts unleashes the next-generation of applications as the blockchain industry matures to take on established financial systems. Algorand’s Pure Proof-of-Stake consensus protocol was designed for enterprise-grade use with guaranteed transaction finality and industry-leading transaction times. Bundling these unique features with trivial transaction costs (.001 Algo) and comprehensive smart contract capability, Algorand is now the platform of choice for developers who wish to bring their vision into the mainstream.

"We looked at several potential technology partners to truly unlock the potential of decentralized finance, but ultimately chose Algorand to issue our innovative profit-sharing token because of the functionality on a cost-effective platform at scale,” says Kendrick Nguyen, Co-Founder and CEO of Republic. “Since the launch of Republic's digital asset on the Algorand blockchain, we’ve been impressed by the performance, scalability and strategic value it brought to the Republic ecosystem.”

Algorand's smart contracts provide an elegant solution to power a new wave of DeFi applications – from credit and lending to marketplaces and decentralized exchanges. Within a year since the mainnet launch nearly 400 companies have joined the fast-growing Algorand ecosystem, leveraging the platform to build a wide range of applications, such as:  investing (Republic), asset tokenization (Props), stablecoins (Tether, USDC, MELD Gold), CBDCs (Marshall Islands), gaming (World Chess), insurance (Attestiv) and accounting (Verady).

About the Algorand Foundation

The Algorand Foundation is a not-for-profit organization with a vision of a borderless economy built on public, decentralized blockchain technology. The Foundation, in partnership with Algorand Inc, has built the Algorand protocol as the cornerstone of achieving this vision. The Foundation envisions a wide breadth of applications made possible on Algorand and is focused on enabling all developers to build next gen tools, educating and fostering an inclusive community encompassing protocol governance and economic efficiency in the development of the Algorand ecosystem. The Foundation is committed to facilitating this innovation in a sustainable and eco-friendly manner by utilizing the pure proof-of-stake consensus algorithm.

For more information, visit https://algorand.foundation/ 

About Algorand Inc.

Algorand Inc. built the world's first open source, permissionless, pure proof-of-stake blockchain protocol for the next generation of financial products. This blockchain, the Algorand protocol, is the brainchild of Turing Award-winning cryptographer Silvio Micali. A technology company dedicated to removing friction from financial exchange, Algorand Inc. is powering the DeFi evolution by enabling the creation and exchange of value, building new financial tools and services, bringing assets on-chain and providing responsible privacy models. 

For more information, visit https://www.algorand.com/.

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