Pure Proof of Stake (PPoS) is Algorand’s consensus mechanism that allows random selection of validators based on the consistency of their stakes.
What Is Pure Proof of Stake (PPoS)?
The likelihood of a user getting chosen in the creation of new blocks is proportional to their stake.
The primary benefit of this is that it makes mining accessible to individuals who don’t necessarily have the resources to participate in traditional mining. Instead of requiring expensive and energy-consuming hardware, all a person needs is a computer with an internet connection and some coins!
Algorand is a pure proof of stake blockchain protocol that achieves scale, security and decentralization. It was developed by Silvio Micali, Turing Award winner and professor at MIT.
Algorand solves fundamental problems faced by other blockchain protocols:
Security – Enabled by pure proof of stake and an elegant Byzantine Agreement scheme, Algorand has provable asymptotic security against Byzantine adversaries.
Decentralization – With a homogeneous token distribution, Algorand empowers a truly decentralized network with no special roles or nodes.
Algorand is a scalable blockchain platform designed to be simple, secure, and efficient. The blockchain is built on the concept of Proof of Stake (PoS), which ensures that participants with the highest value in the system are selected to validate transactions. This approach eliminates the need for high energy consumption (and cost) as well as complex network structures, which are required to maintain a PoW blockchain.
The Algorand platform employs two types of participants: users and nodes. Users transact using the Algorand platform by sending or receiving tokens to other users. Nodes participate in the network by processing transactions and securing them. The system also features special nodes called Block Producers (BPs), which perform all functions of an ordinary node as well as verify blocks in the system by signing them.
At launch, the first million blocks were pre-mined. Afterward, new blocks are created every five seconds at random intervals. The block creation process starts with a set of randomly selected BPs choosing a leader for each block cycle. A leader is elected by means of a multi-round Byzantine agreement protocol called the Binary Byzantine Agreement (BBA). During this process, BPs communicate with each other offline until they reach a consensus about who will become a block proposer.