Algorand (Algo) Co-Chains – Permissioned Blockchains
For the past eleven years, since the birth of bitcoin, the use of blockchain in various fields of life is still in its upcoming phase, as the overwhelming technology tends to grow rapidly, it lives up to the praises that surround the application. Developers in the crypto space are continually seeking ways to improve the technology with better solutions and applications in a livelihood that would be specific to certain industries and would, therefore, draw the interest of more individuals to engage and leverage this technology.
The numerous benefits of blockchain have made businesses worldwide to rapidly get involved with the technology, some of its benefits are security, transparency, better privacy, fast transactions, greater efficiency, and all for a lesser cost. This technology has caught the interest of numerous industries ranging from government, corporations, and organizations, and the general public. The interests of the various entities spread across different types of blockchain ecosystems, systems, and infrastructures.
Although permission blockchain models have made waves in the space of traditional finances and businesses, networks that are permissionless such as Ethereum and Bitcoin have found a way to gain attention in the mainstream media. Irrespective of the fact that they are decentralized, institutions that pay close attention to the sensitivity of data are trying to adopt private networks in order to reduce the exposure that cannot be gotten from public networks. Although, the birth of hybrid platforms and the most recent co-chain architecture created by Algorand has proven to be groundbreaking innovations in blockchain technology.
One thing that is popular about the Algorand blockchain is the use of pure proof of stake protocols which brings a solution to the problems facing blockchain technology and brought about scalability, security, and decentralization, without any form of compromise with one parameter and another. Because it is a permissionless blockchain, it is therefore transparent and made public in compliance with the sector’s principles.
Working Principles of Algorand Co-chain
Algorand co-chain is working in such a way that it will be a permissioned blockchain that will operate independently from the parent chain, and with that, the transactions can be made private and at the same time, there would be interoperation with the main chain to enable transactions to be carried out to and from the permissioned blockchain. The aim of the resulting blockchain would be to get exponential advantages for companies use cases.
The Co-Chain Architecture in Blockchain Ecosystems
The infrastructure of the co-chain system gives room for entities to get a way of defining the attributes of their preferred blockchain, with this any participant can effectively create and design their personal ledger that would be integrated within the Algorand’s hybrid blockchain ecosystems. Silvio Micali the founder of Algorand stated that the technology has the benefits of both public and private ecosystems and so it is has been dubbed in co-chain. According to the nature of business globally, real values are been provided by co-chains in a private network expansion relating to how enterprises and corporations accept distributed ledgers.
Algorand co-chain makes it possible for developers to create ecosystems that are entirely independent of the public chain. Normally, the co-chains that are deployed in the network operator based on their unique independent Algorand consensus mechanism. The co-chains can now be integrated within the Algorand network depending on their interoperability with the main chain. Also, co-chains has got the underlying features and tools that are found with the permissionless layer of Algorand. With this, co-chains can have access to the already existing resources like the atomic transfers and smart contracts that can be found in Algorand’s layer 1.
The Competitive Edge of Co-chain
There is a rapid growth in the evolution of blockchain technology and as a result, some of the previous inventions and designs have faded off even before the owners of products will get the chance to launch their products. The most important standard in the development of blockchain was to get involved with decentralization. But this has been twisted over time because various stakeholders have come up with different practical solutions for this emerging technology other than just making payments easy.
Co-chains brings value in business interoperability, a thing that was a major backdrop in the previous versions of the blockchain. For example, Algorand made it possible for it users to be able to build co-chains with the use of the proof of stake consensus and these co-chains can interact with other businesses on the public chain of the platform. The participants in the network also have the ability to deploy smart contract features. Businesses can easily maintain autonomy in the co-chain infrastructures thereby creating a higher level of security. Various enterprises can boast of having control over the data that should be shared with the public network and this can be achieved with co-chains.
Co-chains Prospective Market
The co-chain market is very much untapped and with that, there is a good chance for Algorand to set the pace with its co-chain architecture platform that is friendly for every enterprise. However, this has the capability of becoming active only if the present developers in the space can constantly improve on their innovations for the purpose of addressing some specific use cases. This technology is gradually becoming the most preferred service for businesses to embrace blockchain for the purpose of expansion. Aside from that, users of public and private blockchain are really thinking of having partial decentralization in order to have a feel of both technologies.
The Sustainability and Economic Values of Co-chains
Judging from the blockchain in today’s world, it is obvious that projects are no longer seen based on the speculations but are valued base on the current proposition. Co-chains are not yet widely accepted and implemented so it is quite difficult to tell whether they will make a sustainable economic case. However, looking at the scaling features and the privacy of maintaining high throughput, Co-chains can effectively provide a sustainable case. And this claim of efficiency would be tested by Algorand’s Co-chains.
