Meet the world’s first carbon-negative blockchain – News
With the ability to transfer value peer to peer securely, transparently and almost instantly without intermediaries, blockchain is arguably the most transformative technology of our time. Yet, with many popular chains such as Bitcoin and Ethereum still relying on the energy-intensive proof of work (PoW) algorithm, the progress towards financial freedom will come at a cost to our environment. Algorand, the world’s first carbon-negative blockchain, presents a scalable and sustainable alternative that has already gained a wide community and been adopted by leading organizations around the world, including being chosen as the official blockchain platform of FIFA.
What is Algorand?
Algorand promises to be the greenest and most efficient blockchain, offering institutional infrastructure capable of hosting a wide range of decentralized applications (dApps) and digital assets. At a time of growing global concern about the climate crisis, Algorand offers solutions that are both powerful and environmentally sustainable.
With increased attention to the energy use of PoW blockchains such as Bitcoin, many chains have attempted to reduce their carbon footprints by adopting more environmentally friendly proof of stake (PoS) consensus mechanisms. However, most of these solutions sacrifice decentralization.
Because the richest validators in PoS (those who provide the most ‘stake’ to the network) have disproportionate control, governance ends up in the hands of just a few network participants. However, Algorand uses a unique algorithm called “Pure Proof of Stake” (PPoS) which ensures that none of the three key elements of the blockchain trilemma – scalability, security and decentralization – are compromised.
How does Algorand work?
Algorand’s PPoS algorithm prioritizes fairness and decentralization. Just like other PoS chains, users can become block validators on Algorand by staking the native $ALGO token. However, unlike other PoS chains, PPoS chooses block validators randomly and anonymously, giving equal opportunities to all network participants regardless of their efforts and ensuring that no group of validators gains more control than the rest.
PPoS also promotes decentralization as the identity of the next block validator is unknown to other network participants. In this way, Algorand’s unique approach to security relies on the honesty of the majority of network participants rather than a limited subset of a few.
As an open source blockchain, anyone can build on Algorand, safe in the knowledge that their contributions are not harming the environment. Each transaction is completed in four seconds, making this carbon-negative blockchain fast and scalable. Algorand is already home to a growing number of dApps and is developer-friendly by design. Instead of having to learn a new programming language like Solidity to start building smart contracts, developers can build assets using a language they are familiar with like Java, JavaScript, Go, Python or Rust.
Who is behind Algorand?
The Algorand blockchain was founded in 2017 by Silvio Micali, a professor of electrical engineering and computer science at MIT. With a background in cryptography and secure protocols, Micali is the co-inventor of groundbreaking technologies such as Zero-Knowledge Proofs and Verifiable Random Functions, both widely used in cryptography today.
In addition to founding Algorand, Micali has received several awards and recognition for his work, including the Turing Prize in Computer Science, the RSA Prize in Cryptography, and the Gödel Prize in Theoretical Computer Science. He graduated from the University of Rome and holds a PhD in Computer Science from the University of California.
How is Algorand Carbon negative?
According to a recent estimate, PoS chains are ~2000 times more energy efficient than PoW chains, making their contribution to carbon emissions negligible. However, Algorand takes its commitment to being green even further as the world’s first carbon-negative chain. In April 2022, Algorand announced that it would offset all of its carbon emissions by implementing the first smart contract to automate the process. A percentage of all transaction fees on Algorand now goes to carbon offsets.
Algorand has also partnered with ClimateTrade, a blockchain marketplace for CO2 carbon offsets, to further help maintain a carbon negative network.
The Algorand (ALGO) token
ALGO is the native currency of the Algorand blockchain and is used to pay for transaction fees on the network, as well as reward network takers and validators. Since the Algorand network runs on a variant of PoS, there is no energy-intensive mining. Any user can become a validator by staking their ALGO tokens. The ALGO token has a maximum supply of 10 billion.
What other problems does Algorand solve?
Beyond a deep commitment to sustainable technology, Algorand is fast. Transactions are settled in less than four seconds, regardless of volume in the chain, and cost only fractions of a krone. With the well-documented scalability issues of Layer-1 chains like Ethereum causing long wait times and sky-high transaction fees, this is music to the ears of both end users and dApp developers who often find themselves priced out of Defi trades or NFT transactions.
Algorand’s strength of vision, ease of use and agility led FIFA to be chosen as the official blockchain platform of the International Federation of Football Associations. Algorand will be a FIFA World Cup Qatar 2022™ Regional Supporter in North America and Europe, and a FIFA Women’s World Cup Australia and New Zealand 2023™ Official Sponsor, as well as helping the association develop its digital asset strategy.
Final thoughts
With one of the most recognized contributors to modern cryptography as its founder and a highly accessible, scalable and efficient network being adopted by some of the world’s biggest names, Algorand is quickly gaining traction. For founders, developers, investors and strategists who are passionate about improving the world’s economic future – while ensuring the preservation of the climate – Algorand makes a compelling choice.
