Smart contracts in
Layer-1 that provide numerous possibilities for next gen applications
Smart contracts in
Layer-1 that provide numerous possibilities for next gen applications
MOST EXCITING USE CASES
In today’s economy, there are a range of existing transactions that rely on intermediaries to provide trust and execution. This leads to unnecessary delays and costs in the delivery to the consumer. Examples of these include use-cases are:
Today, most 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 This method is outdated, slow, and, most importantly, not cost-effective. This is why developers using blockchain, are using smart contracts to automatically execute transactions using basic lines of code stored on the blockchain when agreement conditions are met. 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.
Algorand’s smart contracts (ASC1) remove these barriers as a trusted, seamless solution with proven performance that is not only faster, scalable and cost-effective, but also functionally advanced to enable sophisticated and complex application. Algorand’s Smart Contracts (ASC1s) are trustless programs that execute on chain, where users can be confident that the program was run without error and the results were not tampered with. They are integrated into Algorand’s Layer-1, inheriting the same powerful speed, scale, finality, and security as the Algorand platform itself, and are cost effective and error-free. ASC1s have the ability to automatically enforce custom rules and logic, from simply defining how assets can be transferred to complex application logic and flow. ASC1s are written in a new language called Transaction Execution Approval Language (TEAL) as well as PyTeal, a python language binding.
Smart Contracts Enable the disruption of economies and the creation of new business models across different industries with efficient and automated transactions and applications, allowing for a trustless execution of an agreement.
UNIQUE FUNCTIONALITY:
Algorand Standard Assets (ASA) provide a standardized, Layer-1 mechanism to represent any type of asset on the Algorand blockchain. These can include fungible, non fungible, restricted fungible and restricted non fungible assets.
In today’s economy, there remain many issues when it comes to the digitization of assets. These challenges include:
ASA’s Enable:
Role Based Asset Control (RBAC): Optional and flexible asset controls for issuers and managers for business, compliance, and regulatory requirements. This includes:
User Protections: Asset spam protection that prevents unknown assets that may have tax, legal, or reputational risk from being sent to users without their explicit approval (users must opt-in to accept new assets).
Standarized blockchain asset with customizable options
UNIQUE FUNCTIONALITY
MOST EXCITING USE CASES
Secure transfers and immediate settlement for multiparty transactions in Layer-1
In a traditional economy, there exists a trusted or legal framework. On the blockchain, Atomic Transfers provide a trustless solution in Layer-1. Atomic Transfers offer a secure way to simultaneously transfer a number of assets among a number of parties. Specifically, many transactions are grouped together and either all transactions are executed or none of them are executed.
UNIQUE FUNCTIONALITY
MOST EXCITING USE CASES
Public Address and Private Spending Key combos are used to protect accounts. Public Addresses are publicly known and used for identification of an account, where Private Spending Keys are for security purposes and used for authentication and encryption of the Public Address required to be able to send transactions from that account. Today, the Public Address and Private Spending Key combo can not be broken - they always come in distinct pairs.
The system of using keys in cryptography has existed since the beginning of blockchain. But it has become inefficient and not always secure. When a compromised Private Spending Key needs to be changed, an entirely new account with Public Address and Private Spending Key need to be opened - and assets moved from the old Public Address to the new. While this is effective, it is operationally onerous. A user who regularly changes their Public Address and Private Spending key also creates downstream implications, with each time a user wants to initiate a transaction from a new public address, they must provide the new public address to others for identification purposes. This leads to interruptions of automated recurring transactions with peers or institutions and additional back office work for those institutions, peers, and vendors to keep track of the changing public address.
Algorand Rekeying in Layer-1 solves these operational inefficiencies by allowing users to change their Private Spending key without the need to change their Public Address. Rekeying enables more flexibility, continuity, and less overhead with any changes of the Private Spending key. This is achieved by having:
Empowering Governance and User Control
UNIQUE FUNCTIONALITY:
Algorand’s Rekeying is unique because no other blockchain offers a way to change Private Spending Keys so easily, providing:
MOST EXCITING USE CASES